Put Out The Flag…Light The BBQ
It’s a pre-holiday trading session today, one that may be better spent watching the market while you put out the flag and light the barbecue. In other words, while equities are open all day, expect volume to taper off dramatically after the first two hours of trading.
S&Ps are trading down 0.50 at 1294. Yesterday afternoon, buyers resurfaced, pushing the market higher after our two-day slide. Nevertheless, we were unable to get any momentum to carry us back over the 1300-level. Today we’ll have a neutral zone between 1295 and 1297.50. Above this zone, look for our next resistance between 1301 and 1305.
On the downside, we have support between 1291 and 1289. If we get below that, look for yesterday’s lows to be tested at 1283. Expect a grind-style trade down to those lows.
NASDAQ is trading up 6 at 2010. For today’s session, it will be interesting to see if it can build on those gains and close the week above 2000. Bear in mind that this has been the strongest performing index of the week. For specific numbers: we have a neutral zone between 2000 and 2010.
On the support side, below our neutral zone expect support between 1995 and 1985.
As for the Dow, after struggling a bit yesterday morning, the index finished up on the session led by IBM which closed at an eight-month high. Expect more of the same as this market is finding a base from which to rally.