New Lows
New session lows in the S&Ps were made in the late morning at 1111.50 in a grinding trade that was dominated by local traders. Earlier, this market was kept in a tight range of roughly 1117 to 1122.50, but then broke through to the downside.
Keep an eye on the Dow. If the Dow sells off even more sharply, expect the impact to hit the S&Ps.
This morning we saw a fast market and a very volatile trade, including on news that Microsoft will not be broken up. But the downside pressure continues unabated in the equities index markets.
Nasdaq futures have traded down to our 1375 target in a thin trade that is dominated by local players. On the downside, we see support around 1368 to 1366, with the next major target at 1350.
Earlier, this market broke through the 1400 level and then 1390 and 1380 as selling pressure intensified.
Weakness in the Semiconductor Index
(
SOX |
Quote |
Chart |
News |
PowerRating) was a leading indicator for the selloff in Nasdaq futures. Keep an eye on the SOX later today to what lies ahead.