Rollover
The rollover trade — with stops and starts and choppy action — is in full swing. S&Ps put in a recent high print of 884 after spiking to a low of 878.60. Key for this market is whether S&Ps can hold key support between 877.50 and 875. This area would have to be taken out before we would see further downside extension.
Nasdaq has seen some light short-covering off the low of the day as sellers ran out of steam in the support area between 902 and 889. We see a choppy trade between 900 and 910.
As we stated in the Morning Meeting, we look for more volatility and choppiness until rollover ends next Thursday.