The Switch

For S&P futures, we view the 1145 level as an “on-off switch,” above which we like the upside and below which we favor the down. This morning, S&Ps are trading up 7.50 at 1148.

Above 1145, the first number will be Friday’s high at 1148.50, and then 1154 to 1156 is resistance.

On the support side, below 1145 we have Friday’s settlement at 1140.20. Under this between 1140 and 1137 we have a support zone, in which we traded heavily on Friday and Thursday.

NASDAQ was trading up 2700 at 1497. Friday’s high was 1502, so we should get right into that. We have resistance from 1507 to 1517. If we get above this, 1537 comes into play.

On the support side, we expect support between 1490 and 1480, then unchanged at 1470. If we get under that, look for a retest of our key zone at 1452 to 1445.

Talk
about it at TradingMarkets World