Stunned
A lower than expected Retail Sales report stunned the
market, pushing S&Ps down
6.00 pts at 1093.80 in the Globex overnight session. For
today, on the support side, we have support between 1092 and 1091. If we
get below this, we will look for yesterday’s
opening range to trade between 1090 and 1089, which was also yesterday’s low.
Now, below this, we would look for the minor gap left open from yesterday’s
trade to be filled at 1083.20.
Along the way, expect some support between 1087.50 and 1086.
On the upside, we would expect light resistance between
1097 and 1100. Above 1100, we
expect resistance all the way up to 1104. We anticipate that if the
market gets this high, the trade will be very
similar to yesterday: a very choppy
and aggressively traded zone.
Nasdaq is trading down 3 at 1397. On the upside,
resistance is going to be between
1400 and 1404. Above this, look for 1420. Along the way, 1409 and 1415
are resistance points.
On the downside, expect support to be found between 1395
and 1385. We do not anticipate
that this will be easy for the market to push through. If we get
below that, look for 1375. We have support between 1377 and 1374, below
which there is an excellent chance of a trade
down to the critical support at
1360 to 1357.
The Dow is trying to fill the remaining 100 points or so
of its post–terrorist-attack gap.
However, from a short-term trading perspective, this may
not be the time to buy this market.