Square One
S&Ps are starting the day around unchanged at 1072.50, although this level is below cash and fair value.
On the upside, we think the key is again the 1075 area. If we can hold trading above this level, we would expect a retest of 1080.50, and if we get above that, the next level would be around 1085.
On the downside, if S&Ps can get back above the 1075 level, and then fall below 1068.50, we think the odds increase for a test of 1055. Along the way, we have support at 1071-70, and then 1068.50, then 1065-63.
Nasdaq is trading at 1353, unchanged. We have a neutral zone from 1357 and 1373. If we get above 1373, we’re looking for 1388, with resistance between 1378-80 and 1385-87.
On the support side, our first level is 1345. If we get below this, we’re looking for 1327-22. We have support along the way at 1335-30, 1328 and 1325-23.
The Dow had a low of 9080 on Friday, which was key area of support.