The Upside Targets
S&Ps are at 1211.60 this morning, up 90, with
upside targets of 1214.50 and then 1221-1221.50. On the downside, support will
be at 1208.50, and failing there, the 1200-1198 area should be retested.
Nasdaq is trading up 11 points at 1704. Our key number on the upside
again is 1720. Above this, as we outlined last week, the downtrend channel
begins the process of reversing. Above this, expect 1720 to 1750 to be a very
choppy, two-way traded zone.
On the support side, the first level
will be 1685 to 1689. If we get below this, look for a move to 1678. Through
here, 1683 to 1677 is support. If this fails, we’re looking for 1660.
As for the Dow, the market fluctuates between 10,250 and 10,500. Once
again, we need a close above 10,650 on the upside. Until then we are
neutral/bearish this market.