Reversal In Question
The longer S&Ps stay below 892, the more likely they will test 888 and then cluster around the lows. The lag in the Nasdaq futures market is getting more worrisome for the upside in the S&Ps, calling into question the quick reversal that this market has seen.
As mentioned in the Morning Meeting, the key for the upside is 892. To improve the outlook, they will have to show staying power above 892.
For Nasdaq, as long as this market is below 1017, the downside should resume — most likely with new lows. On the downside, we have targets at 1013 and 1011-1009.