Less Than ‘Fair’
S&Ps are down 3.10 at 1188.40, which is 2 points below cash and follows yesterday’s settle 3 points under fair value.
For today in the short run, above 1190 we think the market will test yesterday’s high of 1195.80 and most likely trade up to 1196.50. We have a resistance zone between 1194.80 and 1197. If we get above this, the odds improve for a move to 1205.
If the downside plays out, we have a first level of support at 1187.50 to 1186; 1186.50 yesterday was our big swing number. Below this area, we’re looking for 1182. We have support from 1180.50 to 1177.
As for the NASDAQ, it is trading up 250 at 1638.50. On the upside, we have a resistance zone between 1642 and 1645, and then a more important zone between 1650 and 1655. If we hold above these zones, we think there is a chance for acceleration to the upside with the first target being 1690. Along the way, 1671 to 1677 is resistance, and above that 1686 to 1695.
On the downside, once again the downside trade has been very choppy and sporadic. Support is going to be roughly the same as yesterday; 1625 to 1615 is critical. Below this we are looking for 1595. Along the way, 1603 to 1598 is support.
As for the Dow, as we forceast yesterday the market was oversold and bounced. We made it to 10,405 yesterday. Unless we can settle above 10,500 we’re not “sold” on the upside proposition. We remain neutral to bearish.