Poised For The Retest
The S&P futures were poised to retest the 1065 low of the day on the weakness in the Dow. On the downside, we feel a trade below 1063.50 could see a pick up in activity and more volatility in a market that has slowed as the lunchtime hours approached.
On the upside, this market would have to move back above 1070. Otherwise, expect a slow grind.
As we stated in the Morning Meeting, the key would be to see if yesterday was a trading rally or the beginning of a move to the upside.
A rangebound market is developing in the Nasdaq futures. Sustained trading above 1255 would take some short-term selling pressure off this market. On the downside, below 1230 the door would be open for an eventual target of 1200.
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