The Mid-Day Pause
After a strong up move this morning, we would expect S&Ps to take a while before taking the next significant move. Overall, as we noted in the Morning Meeting, this market remains dominated by news and emotion.
We see 852-855.50 as a neutral area. The longer S&Ps spend at one end of that area or the other, the more likely they will move in that direction. On the upside, the targets are 859-860, then 862-862.50, and 864.50-865. On the downside, below 852 look for 850-849 which will have to hold or the odds increase they will go it for 842.
For Nasdaq futures, the neutral area looks like 1067 to 1076. Above 1076 look for 1078, then the high area at 1080-1081. On the downside, if they go below 1067 then can’t get over 1070, look for 1065, then 1063 and possibly 1061.50.