The Key Target
S&Ps are trading up 1.10 points at 1179.40 with a key number at 1186.50.
Above 1186.50, the target becomes a zone between 1199 and 1205. On the way, critical resistance is between 1193 and 1194. If we get above the 1205 zone, we think there is an excellent chance to trade up to Monday’s high area of roughly 1221.
On the way to 1186.50, we have a neutral zone between 1179 and 1181. If we fail at 1186.50, or if we do not test 1186.50, we think the key zone on the downside is between 1178.50 and 1177. Below this, the first stop should be 1172.50.
NASDAQ is trading up 150 at 1627. For today, our first level of support will be between 1618 to 1614. If we get below this, the first test should be 1595. We have support between 1603 and 1592.
On the upside, we have a neutral zone between 1630 and 1640. Above 1640, the first stop should be 1660. Resistance is found between 1648 and 1655. Above 1660, look for 1692.
The Dow hit our 10,200 target basically yesterday and bounced a little bit into the settle. Nevertheless, it was the weakest of the major indices in terms of performance yesterday. We are neutral to bearish in the Dow right now.