Taking A Breath
S&Ps are taking a breath at mid-day, and I would expect to see a trading range between 1312 and 1322.50 until about 2 p.m. Central.
Currently, S&Ps are at 1315.50. In the Pit this morning, there was some early profit taking from yesterday. Then around 9:00 a.m. Central, there was a continuation of some institutional buying, including Merrill, Goldman and some from Salomon Smith Barney.
We had a critical area at 1322.50, we rallied through it and hit some buy stops for a high of 1325.50. Locals have pushed the market down to the recent low of 1312.
Based on market activity and the order flow that I viewed this morning, I believe we may get a late afternoon rally.
Right now we’re sitting in a neutral area. We have to get above 1317.50 and then 1321.50 for the upside to take hold.
For the NASDAQ, we failed to make headway into some key resistance areas at 2400 and above. We expect 2350 to act as a pivot point.