Snap Back Or Fizzle
After a down move that caught some players in the market by surprise yesterday, today will be critical to determining if the rally will snap back or fizzle.
This morning, S&Ps are up 0.70 at 1291.30 on very light volume. For today, on the upside, we have 1300-1305, which is critical resistance. If we get above this, yesterday will be looked upon as a one-day breather, and should target a move up to 1312. We have resistance between 1310 and 1311.
On the downside, we settled essentially at the day’s low yesterday. We have a neutral zone between 1293 and 1290. If we get below this, look for a move toward 1283. Along the way, 1286 to 1285 is support.
NASDAQ is trading at 1968.50, up 10.50. For today, we have support between 1955 and 1950. This is a critical area. If we get below this, we’re looking for a move to 1900. Along the way we have support between 1935 and 1924.
On the upside, we have light resistance between 1975 and 1985. Above this, look for 2000 to trade. The key area will be 2000 all the way to 2010.
The Dow had a little more give-back yesterday. Settling at 11,105, it is being faced with the first serious test of holding onto 11,000. If we were to close below 11,000, we think there would be a fair amount of confusion in the marketplace.