Squaring Up…
S&Ps are trading down 1.30 at 1241.70 after a quiet night on Globex. We could see some squaring of positions today in advance of next week’s two-day Fed meeting.
On the upside, the first key area will be 1244.50, then 1245.50, and a major area at 1247.50. If we can get above and stay above 1247.50, we should go to 1253.50.
On the downside, we have 1244.50. If we get below that, we should retrace to 1240 and then 1238 and 1234.50. Below that, we have critical support at 1231.50.
NASDAQ is trading at 1768, up 10.50. For today, we have resistance from 1780 to 1786. If we get about this, 1790 to 1806 comes into play. Our target on the upside is still 1820.
We have key support between 1750 and 1730. If we break through this zone, we would look for the selling pressure to increase with a move toward 1690. On the way, 1720 to 1710 is support, and 1705 to 1698 is support.
As for the Dow, the same thing applies: it still is attempting to build a base.