Rollover
Today, December becomes the front month for S&P futures as rollover enters the last phase. On Globex overnight trading, September is down 5.00 at 1034. An equivalent value for December would be around 1036.
For December S&Ps today, we have support at 1037.50, 1033, 1025 and critical support at 1023.
On the upside, we have resistance at 1040, 1043 and 1048.
Nasdaq is trading basically unchanged. For today’s trade, fair value in December is between 8.50 to 11.00 pts on the Nasdaq. Our first key level on the upside will be between 1270 and 1278. If we can get above that it targets a move to 1290. This will be an important swing area.
On the support side, we have 1255 to 1250, which is below yesterday’s low of 1256. If we get through this look for a move to 1235. Expect some support between 1244 and 1240. Under 1235 we think there’s a chance for 1200.
The Dow closed at 8920 on Monday. We have a 75% retracement at 8533, based on the up move from 7460 to 11,750. This should be an important level if we head lower. We have not traded down here since 1998, and we expect volatility to continue.