Limit And Bounce
S&Ps hit the limit down and then bounced, led by strength in the Dow.
In the late morning, S&Ps are at 1128 after hitting limit down at 1123.30 on heavy selling in the market.
Then the Dow led the rally, bringing the S&Ps higher. Our upside targets above 1128 are 1132.50 and then 1137.50. If S&Ps fail to get over those levels, our next downside target below 1223.30 is 1114.
NASDAQ hit double limit at 1433 on a complete lack of buying interest coupled with weakness in the second-tier stocks. Some recovery in this market after the limit, trading to 1445.
Once again, keep an eye on the Semiconductor Index (SOX). If the SOX show some strength, coupled with the Dow rally, the chances of a move to the upside improve.
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