Looking For Support
S&Ps were trading up 100 at 1305.50. On the
upside, we have 1308.50, and then 1312, which we must stay above
to get out of trouble this morning. Above this is 1317.50, 1320.50, 1321.00
and a major at 1323.50-1324.
On the downside, we have 1303, 1302.50, a key area
at 1300-1299.50, a major area at 1297, then 1294.50, 1290.50, and another
major area at 1287-1288. Very
disappointing performance by the S&Ps last week. We ended up trading lower
on the week, despite the Fed cut.
NASDAQ was down 11 at 2282.50. CSCO is trading $1
lower in the pre-market. We have support between 2255 and 2240. If we get
under that level, look for a move to limit down, which comes in at 2238.50.
Below that, we have support between 2215 to 2190. This is critical. With any
close on an hourly basis below this zone, look for the market to take out the
2115 low print made on Tuesday.
We have resistance between 2330 and 2350. Above
that, 2385-2405 is absolutely the most critical zone. If we can get above this
zone on an hourly basis, odds are we have a chance to get back to 2500.
As for the Dow, this market has given up basically 400
points from its high on Wednesday, and is now getting back toward the key
10,500 area. We remain neutral. Only a close above 10,800 would get us toward
the bull side. Only a close below 10,400 would get us toward the bear side.
On
the economic front, nothing today — just some Fed speak. Between 11 a.m. and
noon Central, Fed Gov Guynn and McTeer speak. Pretty light week until Friday,
when Retail Sales and PPI come out.