Rollover Trade

Rollover (with the December contract expiring next week) is still weighing on this trade. This morning, March S&Ps (SPH) are trading up 2.10 at 1119.

On the upside, we have to get above 1122.50 for the downside pressure to be relieved. Above this, we have 1125.50, and then 1129. If we can get above 1129, the market would then become neutral.

On the downside, we have 1118.50, 1114.50 (which was the Oct. 26 high), 1112 and 1109.50.

Nasdaq is trading up 2.00 at 1606. To relieve some of the downside pressure, at a minimum they have to get above 1619. Along the way we have resistance from 1608 to 1612. Above 1619, we’re looking for 1632.

On the downside, if we can’t get over 1612-1619, we’re looking for a 1591 to trade. We have support from 1603 to 1600, and 1595 to 1592. If we get below 1591, we have a target of 1570.

The Dow never tested the bottom of the range of 9700 to 10,000 as we discussed yesterday. That should act as pretty good support. However, if we do break through that, we have downside targets at 9635 and 9595