It’s June…
The front month for S&P futures is now June, and as people unwind positions from March into June, it may take a few days for the market to assume a clear trend. In the meantime, expect a choppy and range-bound trade.
For today, on the upside, our first target is 1279. Above that, we need to get above 1282-83 for the upside to take hold, which is a key area.
At 1275.50, we’re at a transitional area for the downside. Below that, we have 1271.50, 1269.50, a key area at 1268 and a major area at 1266.50.
NASDAQ June was trading down 850 at 2004. Yahoo and related internet stocks are off sharply this morning on Yahoo’s news.
We’re opening just below our first critical resistance from 2020 to 2035. Above that, look for yesterday’s high of 2048 to trade.
On the downside, we have critical support between 2005 and 1994. We still have an open gap to fill from 1994 to 1965.50. We have support on the downside between 1975 and 1960.
Dow settled at 10,730. That was the highest close in March. It failed four times at 10,700 over the last two days, and has finally settled above it.