Quiet Day
S&P futures were trading up 300 at 1439.20 on minimal volume overnight. To say the least, Friday was a quiet day, and we expect today and Tuesday to be the same. In fact, many traders are taking these next two days off, waiting for the post-election.
For today, S&Ps have a zone between 1438.50 and 1442. If we get above this zone, the market should move toward the 1448-1450 level. However, bear in mind that 1443.50 to 1445 has been acting as an impenetrable wall.
If we do get above 1448-1450, the market has a good chance of setting up for a move to the 1468 target. We are looking for this target to be met this week. Along the way 1454.50-1457 is resistance.
On the downside, we have a support zone between 1435 and 1433.50. If this fails, look for 1427.50. If we get below 1427.50, we have a good chance to make a move toward 1417.
We have support between 1422.50 and 1421, and then a zone between 1419 and 1416.50. If this were to fail, we have Tuesday’s low at 1415 and below that the gap area from Monday between 1413 and 1411.20.
The NASDAQ was trading up 10 at 3363. A tight range for a second day in a row on Friday. But it has been higher over those past two sessions, which bodes well for the market. Today after the close, Cisco
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PowerRating) reports earnings.
We have resistance between 3385 and 3400. If we get above this zone, look for a move to 3460. Along the way, 3425 to 3435 is resistance, then 3455 to 3465. Above 3460 the market has an excellent chance of moving to 3520. Along the way, 3492 to 3500 is resistance.
We have support between 3355 and 3345; under that, 3320 to 3312. If we get below 3312, look for a move to 3280. This will take out both Friday’s and Thursday’s low. The market has had pretty good support under 3300. We expect this to continue, and we don’t see a move below 3250 today.
The Dow is still consolidating off the spike rally. We have only lost 180 Dow points from our high made on Oct. 31. Look for some more consolidation followed by an up move.
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