Moving Up
S&P futures are trading up 6.00 at 1024.20, which puts us in a critical area. On the upside, we have 1028, which will be a key area, then 1032.50 and a major resistance area at 1035.50-1036.
On the downside, the first level is 1021, which was yesterday’s high, and then a cluster of support between 1018 and 1015. Below 1015, we have 1013, 1010 and a key area of 1008.50.
Nasdaq is trading up 12 points at 1213. On the upside, we again believe the key level will be 1226. We need to get a settlement above here. Along the way this morning we expect resistance between 1217 and 1221, and then 1225-1229. Yesterday’s high was 1228.
On the downside, we see support between 1201 and 1197. If we get below 1197, expect a choppy trade back to the 1186 level. The market spent most of the final hour in this zone, and we continue to think it will be an area of heavy activity. If we get below 1186, we think the recent lows of the week will be exceeded – between 1168 and 1166.
As for the Dow, a late buying spurt yesterday moved this market into positive territory. We continue to think that the market is now poised to consolidate, and possibly at higher levels.