Post-Expiration
For today’s trade, expect the market to work off expiration excesses as we should have a two-sided trade for at least the first 30 minutes, after which the general direction will begin to show itself. This morning, S&Ps are down 1.50 at 1224.50.
On the support side, we have critical support between 1222.50 and 1220. If we get below this, expect a retest of Friday’s low of 1211.50. We have light support between 1215.50 and 1215, and then a band of support between 1212.50 and 1209.50.
We have a band of resistance between 1227.50 and 1231.50, the most important of which is between 1229.50 and 1231.50. If we get above this look for 1237. Along the way we have resistance between 1235.50 and 1238.50.
NASDAQ is up 0.50 at 1729, also well above fair value. We have support between 1715 and 1705. If we get below this, we’re looking for a move down to 1685. We have a support zone between 1685 and 1670.
On the upside, we have resistance between 1730 and 1750. Included in this is Friday’s high of 1746. In this zone, expect a very choppy two-way trade.
The Dow settled below 10,750. Technically, it’s looking like all the other markets, which is bearish. Yet the velocity of this move has been quick, and we would expect some slowdown in movement as the market should attempt to base.