New Front Month
March 2002 is now the front month for S&Ps (SPH) and Nasdaq (NDH) futures.
S&Ps (SPH) are trading down 9.30 pts at 1130. This is holding just above our critical support area between 1128 and 1126.
Below here, we feel there may be some stops triggered that would take the market to our next downside target of 1118.10.
On the upside, to get out of trouble, S&Ps need to trade above our neutral/resistance zone between 1139 and 1143. Only a trade above this zone would relieve the selling pressure from the last week. On the way to the neutral area, we have a small band of resistance between 1132.50 to 1135.
Nasdaq (NDH) is trading down 30 points at 1644. On the support side, our first level is 1642-1635. 1642 was yesterday’s low. If we get below 1635, we’re looking for a move to 1620.
On the upside, we have a resistance/netural zone from 1647 to 1661. If they get above 1661, we’re looking for 1680 to trade. We have resistance along the way from 1667 to 1671, and 1675 to 1678.
Since falling below 10,000 on Monday, the Dow has only been able to get back above that level once — and that was on a spike following Tuesday’s rate cut. We are now squarely in the zone that we traded for the majority of November between 9700 and 10,000