Rumors
S&PS chopping in the 1093 to 1088 zone following a rumor of an explosion in New York City that put a tremor in this market. Reports now say the explosion occurred in a building that houses a technical school, which has calmed fears. But the market is still digesting this news.
As we stated in the Morning Meeting, the close yesterday below the 1100 level is a definite negative for this market. Upside targets above the current zone include 1095 and 1100.
Nasdaq traded down to 1293 in a panic-style trade on the explosion rumor, but quickly retraced to the 1307 level. The trade remains thin and “emotional.” The sidelines may be the best place until this is all sorted out.
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