On The Overnight Low
S&Ps are trading at 1137, the low of the overnight Globex session, and down 8.70 pts. On the support side today, we are currently below our first key area at 1141.50 to 1140.50. The longer we stay below this, the more bearish it is. The first support zone is 1136.50 to 1135.80. If we get below this, 1132.50 becomes the key.
On the upside, if we get above 1144, we anticipate yesterday’s high of 1147.50 to be exceeded, as we would target a move to 1151. Along the way, stopping points will be 1145.50-1146 and 1147.20-1148.
Nasdaq is trading at 1635, down 30 points. On the support side, the first level is going to be just under the current level, between 1634 and 1628. If we break below this, we’ll look for Monday’s low area to trade. Monday’s low was 1613, and the opening range was between 1616 and 1613. We view that as the target.
On the upside, the first area of resistance will be found between 1644 and 1649. If we get above this, expect a choppy trade toward 1655. Above 1655, things start to look better, but the key is going to be 1660.
The Dow traded to 10,015 intraday yesterday. The 10,000 level is becoming more of a psychological barrier than anything else. But realistically, we need a settlement above 10,015 for the upside to reshape itself.