Key An Eye On The Cash
S&P futures are at 1404, up 470, this morning, and at about a 1400-point premium to cash. The key in this rally is going to be the cash. If cash gets above 1391, it should be significant.
For S&P futures, on the upside key levels are 1406.50, 1407.50, 1411.50 and Monday’s high of 1412.50, then 1415.50, a key area at 1421.50, and a major objective at 1425.50.
On the downside, we have 1401, 1398.50, 1393, 1391-1392 (where this market found support yesterday), 1389.50 and a major area at 1386.50, then 1385 and 1382.50.
NASDAQ is up 42.50 at 2962. For today, we have support between 2937 and 2920. Under 2920, we have a key area between 2910 and 2895. If we take this level out, look for a move to 2820. Along the way, we will have limit down at 2825. Any trading below this level, especialy on a settlement basis, targets an eventual move back to the 2750 area.
Resistance is between 2990 and 3010. Above 3010, we have a key area between 3025 and 3050. If the market can take out this zone, it bodes very well, and we would expect a rally towards 3110 and possibly a move over the next few days toward 3400. The key will be if we can close above 3050.
As for the Dow cash, resistance is going to be found between 10,850 and 11,000. This zone has to be taken out, which will give a clear picture as to the next move. Expect a choppy, upward trade, as we think 11,000 will be tested over the next few days.