The Important Zone

S&Ps are trading down 950 points at 1124. We see a pivotal area for this market between 1124 and 1126. Under 1124, we have 1119.50, then key support at 1118.50, and then 1115.50.

On the upside we have 1126.50, then 1128.50, 1130.50 and a key level at 1132.50. For this downward spiral to stop, we need to get above 1135, which will put this market in a neutral area.

NASDAQ is trading down 23 at 1396. Attention will focus on Intel which will give a quarterly update today. For Nasdaq futures today, on the upside, the first key will be getting above 1410. In between, expect resistance at 1405-1411. If we can get above 1410, we’ll look for 1421 to trade. We have resistance between 1422 and 1428.

On the support side, the first area is going to be 1392 to 1388. Below this we’re looking for a retest of yesterday’s low of 1373. Along the way, 1381 to 1378 is support, and then 1374 to 1370.

As for the Dow, it finally made it back above 10,000. It did not, however, close above the 10,050 level. Today it will need to get above and close above the 10,050 level, to begin to stabilize.