Quietly Waiting…
We expect another extremely quiet trade, as all attention is focused on the two-day FOMC meeting convening today. Yesterday we registered four hourly readings with less than a 400-point range in the SPH.
This morning, S&Ps are trading at 1370.30, up 0.30. As we said yesterday, it would be moderately bullish if we could close above our neutral zone at 1363-1369, which was accomplished with a settle at 1370.
Again, today 1363-1369 is our neutral zone. If we hold above this zone, we look for yesterday’s high of 1374 to be exceeded, and we would look for a trade to last week’s high of 1379.
On the downside, if we get below 1363, again, 1359-1358 is light support, then we’ll look for 1355, followed by a move down to the 1348 area. We have support between 1351 and 1347.50.
NASDAQ was trading up 500 at 2710.50. The market was able to retrace some of its recent losses. For today, we think 2710-2725 is going to be critical resistance. If we get above this, look for a move towards 2800.
We have support between 2700 and 2690. If this fails, look for a move down to 2650. Limit down today comes in at 2640.50. We would be very surprised if this were to take place.
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