The Key Question
S&Ps are trading up 3.60 at 1218.90 this morning, but the key question remains whether the upside can continue today. For today for the upside, we have a resistance zone between 1222 and 1225. If we get above this zone, we’re looking for 1230-1232.
On the downside, our first key number is going to be 1217.50. If we stay below this level, we anticipate a move to yesterday’s low. Between 1217.50 and 1211.50 we expect a choppy trade. This is going to act almost as a neutral/bearish zone. However, under 1211.50 selling should accelerate, and the first stop should be 1209.
NASDAQ is trading up 22 points at 1715. We still view 1753 as the key, and we still view the entire area between 1720 and 1753 as a choppy, two-way street. We have to settle above 1753 in order for the upside take hold.
Now as for today’s trade, we view 1715 to 1707 as a key zone. Below this, we look for 1690 followed by a move toward 1665.
The Dow settled at 10,522, up 121. The high of 10,595 was just below where we needed to settle — 10,650. We need a close above 10,650 to get the bearish/neutral picture reversed.