Low on the Day
S&Ps put in a new low on the day in the late morning. S&Ps are just above the key support area between 1061.50 and 1060. Below this, selling could get aggressive with the 1047.40 target on the downside. On the way, we would expect a thin and choppy trade from 1059 to 1053 — if that downside pressure intensified.
As we said in the Morning Meeting, the market would have to stay above 1074.50 to 1076.50 for the upside to continue.
A selloff in the Nasdaq as well with a new low at 1199, although it recovered just above 1200. The Nasdaq has a support zone between 1203 and 1198, below which we’d look for 1183 to trade. Sellers are very much in control of this market.