No Surprises
With much of the market’s attention focused on the Employment Report tomorrow, we would expect few surprises today. In fact, we would not expect to settle above 1265 or below 1245 today.
Currently, S&Ps are up 2 points at 1252. We have a neutral zone at 1250 to 1245. If we break out of this zone, we have a downside target at 1242. On the upside, the first resistance zone is 1254 to 1257, and above this there is a chance for a move to 1263.50.
NASDAQ is trading unchanged at 1785.50. We have support between 1780 and 1770. If this fails, 1750 is of course the target and the level that we had been looking for, for some time.
On the upside, the first key level will be 1800 to 1810. This was our key area all day yesterday as we continued to fail here. If we can get above it, we should look for some retracements to the upside in what has been a very swift decline. The first level is 1830.
The Dow closed below 11,000. Psychologically this was certainly important.