More Warnings…
Once again we were hit with an earnings warning, this time from Nortel, with negative news that caused a decline in European markets and in our overnight markets.
S&Ps are trading lower by 1550 points at 1174.50. As we said over the past two days, our target zone was 1192 to 1200 in the S&Ps. This zone was met yesterday, as our high was 1194.50. We wouldn’t be surprised to see a rest from the rally today, and possibly a retracement.
We think the key support is between 1172.50 and 1170. If we get below this, there is a very good chance that we’ll trade down to yesterday’s low of 1161. We have support between 1161 and 1158.
On the upside, we think the key will be 1180 to 1184. If we can get above this resistance zone, there is a very good chance that we’ll make a run back toward yesterday’s high of 1194.50.
NASDAQ is trading at 1700, which is down 53.50. Yesterday’s low was 1680 – the bottom of our support range of 1700 to 1680. That support zone is still valid. First off, in this support zone we’ll have limit down at 1688.50.
Resistance is between 1725 and 1740. If we get above this, look for the market to fill the gap, and trade up toward 1780.