In The End…Confusion
After the release of the Employment Report today we’ve seen confusion over what it means and what it bodes for the future. Will there be more Fed rate cuts, or is the worst behind us now?
As for S&Ps, they were down 4.30 pts at 1218. For today, we have a key zone between 1223 and 1218. If we hold below this zone, we’re looking for a retest of the 1211.50 low, and we are also looking for that low to be exceeded. Along the way, 1216 to 1215 will be light support, and then we have a zone between 1212 and 1208.50.
On the upside, if the market has the ability to hold the bottom end of this range we’ve been in and we can get above our first zone between 1218 and 1223, we’re looking for a move back to 1230. Along the way, 1227 is going to be critical. We have a resistance zone between 1226 and 1227.50.
NASDAQ is trading at 1741, off 17.00 points. We have support between 1735 and 1728. If we get below this, we’re looking for move to 1695. Along the way, 1712 to 1707 is support, and then 1700 to 1695.
We have resistance between 1750 and 1763. If we get above this, look for a move up to 1790. Along the way 1780 to 1785 is resistance. With any 30-minute close above 1800, the target becomes 1850.
As for the Dow, it has started to flatten out, so to speak. It is in a range similar to the rest of the market. The drawback is that we have had a few settlements now below 10,500, and the longer we hold down here, the more likely it is we’ll be heading below 10,000.