The Next Move
The big news for the market will be Cisco’s
(
CSCO |
Quote |
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PowerRating) earnings after the close and, of course, the Fed meeting tomorrow.
This morning, S&Ps are trading at 1098, up 8.50 pts. On the upside we have 1100, a key area at 1102, then 1105.50 and a major target at 1107.50.
On the downside, we have 1095.50, and then a cluster between 1092.50 and 1088.50. Remember, Friday’s high was 1091 and the range for the last three hours was between 1085 to 1091.
Nasdaq is trading up 25.50 at 1458.50. For today, on the upside our first key area is going to be 1455-62. If we can get above this area, we are looking for a move to 1500. On the way there, we have resistance/target areas at 1473, 1481 and 1495.
On the downside, we would expect scale-down support from the gap open to unchanged at 1432.50. Key areas along the way are 1450-47. It is absolutely critical that the market can close above this zone on an hourly basis. If we do not and we are below this key level, we think the gap fill should occur and most likely should lead to a test of the 1423 area, which was the low of the final 15 minutes of trading on Friday.