Neutral Zone
S&Ps were at 1166 this morning, up 4.20 points, in the midst of a neutral zone that extends from 1165.50 to 1168.50. If we get above this, we think there is a chance for a move toward the 1191 area. Along the way, we have resistance between 1175 and 1177.50. If we get above this, 1181 to 1183 is the next resistance zone.
On the downside, below our neutral zone, look for a test of Friday’s low at 1158.50. We have some support between 1159 and 1155. If this fails, look for a move to 1140. Along the way, 1151 to 1149.50 is support, as well as 1145 to 1143.
NASDAQ is trading at 1688, up 1500. For today, we have support from 1655 to 1645. This encompasses Friday’s low of 1650. If we get below this level, look for a move to 1600. Along the way, 1630 to 1620 is support, followed by 1605 to 1595. Limit down comes in at 1608.
Resistance is between 1695 and 1720. That includes Friday’s high of 1720. If we get above this, look for a move toward 1770.
The Dow just completed its worst week since 1989, dropping 7.7%. Also, we had our lowest close since early 1999 at 9823. We still have support down to 9600 in the Dow; we expect it to hold.