Taking A Breath
Given the magnitude of the move that we made yesterday, expect S&P futures to take a breath this morning for the first 45 minutes or so. Expect a choppy trade encompassing the range we saw yesterday afternoon.
S&Ps were trading around unchanged at 1375. On the upside, we have 1377, 1378.50, 1380.50, 1383.50, 1387.50, 1392.50, 1395, 1399.50 and a major target between 1403 and 1404.
On the downside, the first important level is 1373.50 to 1371, then 1368, 1366.50, 1363, 1361.50, 1360, 1358, 1355, 1351.50, 1348 and then yesterday’s low of 1342.
NASDAQ was trading unchanged around 2840.50. We’re coming off the largest one-day percentage gain ever. We have support between 2800 to 2775. Under that, look for a move to 2720. We have support between 2730 and 2710.
If the market trades below 2710 on an hourly close, we will have already surpassed limit down. Secondly, it will be signaling an attempt to retrace upwards of 50% of yesterday’s move. If this happens, expect a move down towards 2640.
Resistance is between 2850 and 2875. Above that, we’re looking for a trade into the 2900s. We have a critical area of resistance between 2920 and 2940. If the market were to settle above this zone, it certainly targets a move to 3100.
For the Dow, 11,000 becomes the key here. Only a close below 10,300 will knock us out to the downside.