The Start Of Something?
Yesterday’s late-day reversal in the S&P market has the potential to be the start of something more significant. Today will be an important day in that we need to at least maintain the upward bias.
S&Ps were trading up 120 points at 1308.30. For today, the key resistance area is going to be between 1312.50 and 1316.70. Expect a volatile choppy trade in this area. If we get through it, look for 1325.50. We have some resistance along the way between 1320.50 and 1321.
On the downside, the first key area is going to be between 1308 and 1305. Below 1305, expect to see a little bit of retracing, possibly down to 1296. We have support between 1299 and 1295.
NASDAQ was trading at 2314 down 11. Massive rally in the final hour yesterday. For today’s trade, we see support between 2295 and 2290, and under that at 2275 to 2260. If we get beneath that, look for 2230. We have resistance between 2330 and 2350. Above this, 2395 to 2415 is critical. Our first upward target is 2450.
The Dow was able to make a nice reversal yesterday afternoon along with the rest of the market. We continue to rate it neutral until we get above 10,800 or below 10,400.