The Threshold
S&Ps are up 3.00 at 1124.50, which is in one of our key areas. We believe it must get above 1124 as a minimum and then stay above it, for the upside to have any chance.
Above 1127, we have targets at 1129, 1130, 1132.50, and a cluster from 1135 to 1139.
On the downside, we have 1121.50, a key area at 1119.50 and major support at 1115.50. Our December low was 1115.80.
Nasdaq is trading up 12.00 at 1518.50 on some positive semiconductor news. We are opening in our neutral/pivot area between 1515 and 1525. Above this, we expect a retracement to 1539. Along the way we have resistance from 1529 to 1533, and then 1538 to 1541.
On the downside, if we are unable to hold the neutral area, we expect a choppy two-sided trade down to yesterday’s low and our 2002 low at 1503. Along the way, unchanged comes in at 1506.50.