Lower…Again
S&Ps are down 2.00 points at 1157.50, after trading as low as 1153 on the overnight session.
For today’s session, we have a neutral zone between 1158 and 1153.50. If we get below this zone, it suggests a target of 1130. On the upside, the key resistance area is between 1168 and 1171.50. Additionally, we have a key area between 1160 and 1168. We spent most of the day trading in this zone, and we think that the longer we stay below this level, the more important that resistance will become.
NASDAQ is trading down 1500 at 1595, a new contract low. Traded as low last night as 1578. For today, we have support between 1585 and 1570. If this fails, 1550 is the target. We have support between 1545 and 1550. Limit down comes in at 1545.
We have resistance between 1615 and 1630. If we get above this, 1650 is the target.
Yesterday was a grind lower. Therefore, don’t expect that if we do get a rally that it would be an explosion higher.
The Dow was able to bounce a bit into the close. It settled off 162 points, but 90 points off its low. We again think that the end of the quarter has much to do with this type of action.