Ouch!
An earnings warning from Merrill Lynch kicked this market lower, with S&Ps trading down 12.40 pts at 1211.10. Today, of course, is the start of the two-day Fed meeting.
On the support side, we have levels at 1208 and then a gap from April 17 at 1206.70. Below that we have support at 1203, and then 1199-1200.
On the upside, we have resistance from 1213, and then a band from 1215.50 to 1217. Above that, we have resistance at 1222.20, 1223.50, and then 1226.50.
NASDAQ is at 1722, down 35. That is below yesterday’s low. We have key support between 1715 and 1705. If we get below this, look for 1680. Along the way, we have scale-down support between 1690 and 1670. Limit-down is 1672.
We have resistance between 1730 and 1740. If we can get above this, we’re looking for 1765. Along the way, 1750 to 1755 will be light resistance.
The Dow should be under pressure with the financial components after the Merrill Lynch announcement. It will be important to see how they respond as the day progresses.