Of Witches And Holly
Today is the conclusion of the so-called triple-witching, as well as the prelude to the pre-Christmas holiday trade, which could effect volatility.
This morning, S&Ps are trading at 1147, up 4.70 pts. To get to a neutral area and shed the bearish undertone, we must trade above 1149. Above that, the target is 1151.
On the downside, we have a pivotal area at 1146.50. Below this, we have targets at 1144.50, 1141.50, and yesterday’s low at 1141.
Nasdaq is trading up 19 points at 1583, on the high of the overnight session. For today, on the upside, we have resistance between 1577 and 1584. If we get above this, we’re going to look for a move to 1595.
On the downside, we have support between 1572 and 1570. Then we have a swing level at 1567. Below this, it’s negative, and above it’s positive in terms of bias. Below 1567, we think yesterday’s low of 1559 will be exceeded.
As for the Dow, the market is still holding up pretty well, although we did settle below 10,000 yesterday.