Lunch-Time Contraction
S&Ps are looking at a tight range, once again, for the lunchtime trade. S&Ps were trading off the earlier highs and consolidating in the 1155-1162 area as the lunchtime trade set in. Remember, yesterday S&Ps held a 400 point range for more than three hours.
As we said in the Morning Meeting, we see 1051.50-1055 as a critical upside objective.
The Nasdaq futures trade also has slowed down as the rangebound lunch break appraoches. Nasdaq needs to sustain a trade above the 1148-1160 area. Only a move below this area places the two-day uptrend in jeopardy.
Earlier, a surge of buying pushed the market to a new high on the week and above last week’s high. Above 1162, the upside objective is 1185.
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