The Reaction…
The S&Ps are down 10.80 at 1246.70, mostly due to declines throughout Asia and Europe. The key will be how the market responds to yesterday’s rate cut.
On the upside, the market has to get above 1253.50. We have a neutral zone between 1253.50 and 1257.50. The more time we spend in this zone, the better it is for the upside, and we would expect a move up towards 1268.
On the downside, we have support between 1248.50 and 1246.50, which was yesterday’s low. Below this, look for a move to 1235. Along the way, 1243.50 to 1243 is support, and 1240 to 1239 is also support.
NASDAQ is trading at 1782, which is down 35.50 on the day. We have support between 1777 and 1770. Under this, we have ballgame support between 1756 and 1750. If we get below this we begin to fill the gap leftover from INTC’s earnings on April 24.
We have resistance between 1795 and 1805. If we get above this, look for 1830. Along the way, 1815 to 1822 should be resistance. If we get above 1830, we expect the psychology of the trade will turn to the bullish side.
Dow got as high as 10,922 yesterday, and settled at 10,873. Still trying to do something at 11,000.
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