Rollover Continues…
S&Ps were unchanged at 1284.50 this morning, as rollover continues. On the upside, our targets are 1286, 1289, 1290.50 and then 1292.
On the downside, we have 1282, 1280.50 and then a major support area at 1278-1277.50. If we trade below that, the targets are 1274.50, 1273, 1271 and yesterday’s low at 1269.50.
NASDAQ was trading up 15 points at 1938. For today, expect some resistance between 1945 and 1965. Yesterday’s high was 1943. Expect scale-down support between 1925 and 1910. If we fail here, look for a move down to 1890. Between 1890 and 1885 will be the key area in terms of support.
In general, this rally has been led by the biotechs and by the semiconductors yesterday. Watch those two sectors closely for clues.
The Dow settled up nicely, up 114 points. As we had pointed out, the target is 11,250 — and that remains the target. We continue to be moderately bullish on the Dow.