One Bright Spot
One bright spot from Friday’s close: even though we had an afternoon sell-off, we basically had an unchanged day. This morning, S&Ps were unchanged at 1320.50.
The first zone we have to be concerned with is 1315.50 to 1325.50. We are currently in the middle of that range. On the upside, if we get above 1325.50, we have 1327.50, then a critical area at 1331.50, a key at 1335.50 and a major at 1337.50-1338.
On the downside, we have a key at 1318.50, 1316.50, and then a major area at 1315.50, followed by 1310.50 and a critical area at 1306.50.
NASDAQ was trading up 25 at 2597. A couple of key things to watch today: Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), as it settled Friday at a new low for the year 2000, and Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating), which is below the “magical” $50 level. In addition, the market will try to string together two consecutive up days for the first time since Nov. 2 and 3.
We have resistance between 2595 and 2605, and above that at 2626-2640. If the market gets above 2640 look for a move to 2720. We have resistance between 2705 and 2740.
We have support between 2540 and 2525. If we get below that, we would look for the Friday afternoon low of 2500 to trade. And, we would expect the market to break through that low, targeting a move to the limit down which comes in at 2477.50 today. Below this, look for support between 2450 and 2425. That encompasses the contract low of 2436.
As for the Dow, some negative bank talk this morning may have an effect on the financials. Overall, this market continues to hold up the best, as it was off only 0.9% for last week.
Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.