Low Volume
Another quiet day with low volume in the equity
futures market is expected today, given the fact that we’re in the midst of
the summertime market and CPI is coming out tomorrow.
This morning, S&Ps are trading unchanged
at 1192.30, coming off a rather uneventful session yesterday in which it
closed down 0.20 on the day. On the upside, our first target is 1193. Above
this, we are looking for yesterday afternoon’s high of 1196.90. If this market
can hold above 1196-area, we’re looking for a trade into the critical and
psychological resistance between 1198 and 1201.
On the downside, we have a key band of support
from 1190 to yesterday’s low of 1187.50. This has been support basically since
Friday. If we are able to get a 30-minute close below this area, we are
looking for a retracement back to the 1180-support.
Nasdaq is trading up 3 at 1638.50. We view
1640 to 1680 as a neutral zone. Within the 1640-80 zone, 1650 to 1655 is a
swing area. If we get above that, things look a little bit better; below it,
they look a bit worse. Nevertheless, we do not recommend actively trading this
zone. But if we do get above 1680, our first target is 1705.
On the support side, below 1640 we are looking at
1625. That did not happen yesterday, and we continue to think that below 1640
it will be a very choppy downward trade. We have support between 1628 and
1623.
As for the Dow, the same old thing: The market is
in the middle of our zone between 10,650 and 10,200.