The Keys
With S&Ps trading around 1096.40 before the open this morning, we face the first key resistance at 1098.50 up to 1100.50. This is critical as it incorporates yesterday’s high of 1098.70. If we can get above the 1100.50 we think we should test the 1108.50 level, which was our high from Friday.
We have support between 1092.50 and 1090.50, and then we have key support between 1088 and 1086. Bear in mind that after the first two hours of trading yesterday we were never able to trade below 1086.
Nasdaq is trading at 1366, unchanged. We have resistance today between 1370 and 1374, and above that at 1378 to 1383. If we can get above 1383, we’re looking for 1400 to trade.
On the support side, we have support between 1358 and 1350. If this fails to hold, we’re going to look for yesterday’s low at 1340 to be taken out. Below 1340, we would expect a move toward 1320.
The Dow settled unchanged after a very whippy session. On its low we were below the 9500 level, which we outlined as key support. We continue to expect this to be critical going forward, and any close below this is bearish.