In the Target
S&Ps are down 2.60 at 1223.40, with the first upside target at 1227.50.
Above this level, 1229.50 and a key level at 1231.50. On the downside, we have support at 1221.50, 1219 which was yesterday’s low, 1216.50, and then a band from 1215.50 to 1211.50.
There has been a lot of play between 1218 and 1227, and we’re right in the middle of that zone. We need to see which direction the market will take from here. Between 1221.50 and 1225.50 the market is going to make up its mind.
Nasdaq is down 12.50 at 1761.50. The fact that we settled above 1753 as we had outlined — we thought settlement was more important above that zone — should lead to further upside testing. On the upside, we’re looking for 1790. On the way to that target, expect resistance above 1775 and a choppy trade all the way to 1790.
On the downside, 1755 to 1750 is critical. If we get below this zone, expect a retracement of the final-hour rally and look for a move toward 1730. Along the way, expect a very choppy scale-down support kind of trade. Below 1730, 1728 to 1722 is critical support.
As for the Dow, it’s still neutral to bearish. It must close above 10,650.