The Support Zone
S&Ps are trading down 12.00 points at 1259, which is below yesterday’s low, and in the middle of a support zone between 1261.50 and 1257.
If we get below 1257, look for Tuesday’s and the week’s low at 1248. Along the way, expect some support between 1254 and 1253, as well as 1250 to 1249.50.
On the upside, we expect resistance between 1264 and 1265. Above it, look for unchanged at 1271. We expect lots of two-sided trading between 1264 and 1267.
NASDAQ is trading limit down at 1932. That puts us right smack in the middle of a support band between 1940 and 1925. If we get below this, look for a move back to 1900. We have support between 1910 and 1895.
We expect to see resistance between 1955 and 1975. From the time we get in this band, we would anticipate a very choppy two-sided trade.
Some profit-taking in the Dow across the board, which led to yesterday’s slip. Certainly we’ll see more of that on the open.
Keep in mind, the market’s attention is focused on tomorrow’s Non-Farm Payroll Report.