In The Aftermath
S&P futures are trading at 1103, which is up 2.50. This followed mass fear in the market about accounting practices and the effect on companies. This will dominate the psychology of the market.
On the support side today, the first level is going to be between 1100 and 1098. If we get below 1098, our first stop should be 1095. Along the way, 1097.70 was yesterday’s low print. On the way to 1095, we have support between 1095.50 and 1094.80.
On the upside, a key area of resistance is 1102.50 to 1105 right off the bat. Yesterday’s top end was 1105, which we hit in the afternoon. In addition, at our 1105.50 high in Globex, we witnessed about 250 contracts traded right around 1105. Above 1105, we would anticipate a choppy retracement toward 1115. Along the way, 1108.50 to 1110.20 is resistance.
Nasdaq is trading up 2 points at 1532. For today on the upside, we have resistance between 1535 and 1546. We anticipate a very choppy trade in here. If we can get above 1546, we then want to see the market build a trading base to an eventual move higher.
On the downside, we have support between 1525 and 1520. Below this look for 1512, with support found between 1517 and 1515. Yesterday’s low was 1510. The longer we trade below 1515, the more likely it is we will break the 1503 low set earlier this month.
Keep in mind the FOMC announcement expected at 1:10 to 1:15 p.m. Central today.