Negative Territory
S&Ps and Nasdaq are trading in negative territory after Friday’s afternoon rally.
S&Ps have support at 835, and below that a cluster at 833.50 to 833. We would expect this area to hold the first time it is tested, but if it eventually breaks, the target would be Friday’s low area of 831-830.
On the upside, S&Ps would have to get above 838 to get to neutral. Then, as outlined in the Morning Meeting, we have key areas at 839.50 and the average price traded at 841.30.
Nasdaq futures are doing better than S&Ps today. However, they are still prone to any weakness – particularly in the Semiconductors (SOX). On the downside, if Nasdaq trades below 1007 and then breaks 1005, the targets are 1003, then 1001-1000. On the upside, Nasdaq would have to show staying power above 1011 to encourage any buying.