Strong Start
S&Ps are trading up 3.70 pts at 1141.70, which is above yesterday’s high of 1139.20. For today, on the upside we have a small resistance zone between 1143 and 1143.50. Above that, we have a key area between 1145 and 1150. We view this as a transitional zone. Within this zone we should have a very choppy, two-way trade.
On the downside, much of yesterday’s session was spent around the 1136 area. If we get below 1139.50, that’s our first target. We have support between 1136.50 and 1135.80. Below this, we have scale-down support from 1134.50 to 1132.50.
Nasdaq is trading at 1658, up 13 points. On the upside, we have resistance between 1659 and 1665. This includes yesterday’s high of 1664. If we get above this, 1675 is the first target.
On the downside, the first key is going to be 1655-1652. If we get below this, look for 1640. Yesterday, much of the session was spent between 1640 and 1650. We feel this will be good support. If we were to get below 1640, it’s a negative.
The Dow made a nice move higher yesterday on broad-based strength. Keep an eye on the financials, as this will most likely be the key sector for the Dow.