The Gateway Point
S&Ps are trading up 4.50 pts at 1134, just below a key area of 1135, which the market must stay above to start discouraging sellers.
Above that, we have 1138, 1140.50, and a key area at 1142.50. On the downside, the key level is 1131. Below that, we have 1128, yesterday’s low of 1125, 1123, 1120 and the gap down to 1116.80 from Nov. 12-13.
Nasdaq is trading up 12 at 1579. On the downside, again the key is 1565. We need a 30-minute close below 1565 for the downside to really begin to take hold. If that happens, the first stop should be 1552. Along the way, 1558-1555 is support.
On the upside, the key area is going to be 1580-1588, which is more a neutral zone. Above 1588, we look for the upside to accelerate. We do have resistance between 1598 to 1610, with the key being that entire area.
The Dow closed below 9800 with a disappointing performance by the money center banks.