Rolling Over…
We are entering rollover week, which means we should not expect any up-tick in volatility.
S&Ps are trading at 1264.50, down 50 cents, well above fair value as we settled at a 3-point premium. For today’s trade, on the upside, we have key resistance between 1266 and 1270. If we can get above 1271, expect a move toward the 1283 level.
On the downside, we have a neutral zone between 1264.50 and 1260. If we get below this neutral zone, look for a move to 1253. Along the way, 1256.50 to 1255 is support.
NASDAQ is trading at 1860, which is up 8.50. For today, we have a big band of support between 1850 and 1830. If we get below 1830, look for Friday’s low of 1786 to be tested.
Along the way, 1810 to 1800 should be light support.
We have resistance between 1870 and 1885. If we get above this, look for a move eventually to 1940. We have key resistance between 1905 and 1920.
Dow settled down only 15 points on the week last week. Nevertheless, it was below 11,000. The market was able thus far has been able to close above 10,750, which we have outlined as critical support on a closing basis.