Steep Premium

S&Ps are trading up 3.60 points at 1151.30. That is 6.50 points above cash as we are trading at a steep premium.

For today, on the upside, 1150.50 to 1155.50 is a resistance zone. If we can get above 1155.50 — especially with a 30-minute close — we anticipate a trade into the 1162-1165 zone.

On the downside, if we fail in this resistance zone between 1155 and 1150, the first area of support is going to be 1148 to 1146.50. If we get below 1146.50, we should start to retrace the levels of the final-hour rally.

Nasdaq is trading at 1656, up 15 ponts, and above last month’s high of 1648. For today, on the upside, the first level of resistance is going to be 1658 to 1663. If we can get above that, the upside target is 1685. On the way to 1685, 1669-72 is resistance, and 1677-80 is resistance.

On the downside, the first bit of support should be found between 1648 and 1645. Below that, the gap should be filled at 1641, followed by a move down toward 1630.

The Dow closed just shy of 9900, back above our key area between 9800-9850.