Marching Higher
The stock index futures markets are dramatically higher on the latest Taliban news. S&Ps are trading up 13.80 at 1130.60.
As for the trade today, we’re going to open up in a key resistance area between 1130.50 and 1133.50. If we get above this zone, the same target applies as yesterday: 1137-1138 and then 1144.
On the downside, it’s not clear how much support will actually be in this market under 1130. We would expect to find some support between 1126.50 and 1125. But the key, if we move lower, is going to be the zone between 1122 and 1118. That zone has now been heavily traded for two sessions. If we were to close below that zone on any hourly basis, we anticipate the makings of another reversal — and more importantly, a reversal that should lead us below the key 1115 level.
Nasdaq is trading up 39.50 at 1569. For today, we’re going to open up just below resistance between 1573 and 1578. Above that, we’re looking for 1595. On the way, we have a resistance zone between 1585 and 1587, which incorporates last week’s high of 1586.
On the downside, with a gap open of this magnitude — we’re going to open up nearly 3% — support is going to be a little tricky. We anticipate support points between 1554 and 1550. Under that, 1545-42 (yesterday’s high is in that zone), and beneath that, 1535 down to 1530.