Light As Snow
S&Ps are down 2.00 points at 1324.70 on the heels of Friday’s massive rally. We have resistance between 1327 and 1332, which is a very critical zone. If we get above this zone, we’re looking for a move to 1346. Along the way, 1337.50 to 1341.50 is another resistance zone.
If everything took off on a replay from Friday, the obvious target is 1366.50, which was the high before the FOMC announcement on Tuesday.
More realistically speaking, that level should be the goal for the upper end of the week’s range. We have support between 1324 and 1321. Under that, look for 1315. We have some light support between 1317 and 1314.
Under that, especially on an hourly close, look for a move to 1306. This would take out Friday afternoon’s low. We think that should contain the downside.
Any close for the session under 1305 is somewhat of a negative and should lead to the eventual trade back toward 1290. If this market is “good” — meaning, it is poised for a trading rally — we should not settle below 1315.
As for the NASDAQ, we see support between 2460 and 2435. Under that, we have support between 2405 and 2395. Expect some resistance between 2505 and 2520. Above that, 2580 and 2600.
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