Recovery…

S&Ps were trading up 1830 at 1375 this morning, recovering from the sharp decline late in yesterday’s session after Intel
(
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was halted.

Remember, 1375.50 was yesterday’s high, and 1376.50 is one of our key areas. Above that is a major objective at 1378.50, then 1380, 1383, 1385, and another key at 1387.

On the downside, we have support at 1372 to 1371.50. Yesterday, our first intraday high was 1372. Below that, we have 1368, 1366.50, 1364.60, 1362.50, and 1360. Yesterday’s trading range for 99% of the day was between 1360 and 1375.50.

A key area of support is 1358.50, 1356 is major, then 1353, and then the Globex low of 1352. The only troubling thing to us is that we did not fill the gap at 1350. A major area of support is between 1349.50 and 1350.

We are trading approximately 6.00 points above fair value. In the first half-hour, it should be choppy and volatile until the cash and the futures realign themselves.

NASDAQ was trading limit up at 2817.50, plus 95. NASDAQ traded as low as 2701.50 after INTC was halted yesterday. INTC was upgraded by several brokerage firms, noting this shortfall was already factored into the stock. INTC is trading up 2 1/2 at 34 7/8.

Based on current levels, NASDAQ’s first resistance is at 2845. If they break 2845, we’re looking for a move to 2875-2880.

Above this, we’re looking for a move to Tuesday’s high of 2935. If they trade above 2935, they should try for the next resistance area starting at 2950.

On the downside, we have key support between 2785 and 2790. If this area is broken, we look for a trade down to 2755. We have support between 2750 and 2760. If 2750 is violated, we look for selling to increase and a trade back to yesterday’s low of 2700.