The First Challenge
If S&Ps can get above 1361 and stay there, they should test the 1367-1370 area (which includes the infamous 1370 high from Jan. 3). This morning, S&Ps were down 1.80 at 1360.10.
We have resistance ahead at 1361.50, 1362.50, a key area at 1365.50, a major area at 1366.50, and after that, we have 1369 and 1371.50.
On the way down we have 1358, 1355.50, a key area at 1353, yesterday’s low of 1351.20, and a major area at 1349.50. Remember that 1350.50 was the low two weeks ago.
NASDAQ was trading up 3.00 at 2484. On the support side, we have support between 2480 and 2475. If we move below that, look for a trade down to 2450. Our key area will be 2455 to 2445.
We have scale-up resistance between 2495 and 2515. If we get above that, things begin to look much better, and we would look for a rally toward 2570.
We have resistance on the way up between 2535 and 2550. Remember, 2550 is our key level. Any hourly close above this level takes the short-term pressure off the market.
The Dow had an impressive day, with a rally of 101 points and closed just below Thursday’s recent high close. The key thing here again is 11,000. The Dow has failed now for four months to get above 11,000 — and it needs to and we think it will.
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