The Zone
S&P futures, which were trading around unchanged at 1416.50, will have resistance in the zone between 1420 and 1423.50.
Above that, 1425 to 1425.50 yesterday recorded many ticks. We would expect to see some volume trading at this price today. Above yesterday’s high at 1427, the market should move to the resistance zone between 1433 and 1438. Expect a very choppy trade in this region.
If the market can get above 1441, look for a move to 1448. Any settlement above 1448 is bullish.
On the downside, we have support between 1415 and 1412. Under this, we should test yesterday’s low of 1408, and if the market breaks through 1408, look for support between 1401 and 1398.50. In this region, expect a very violent trade, as players will try and run the market through perceived stops.
One number to look at below 1400 is 1394.60, which is the contract low settlement from February 25. Beneath that, 1392.10 is the level made April 14. The contract low is 1385.60.
Keep in mind that these numbers are skewed because the SPZ were not the front month during these times. They were trading with a greater premium.
One needs to look at the S&P cash to get a fuller understanding. To put this in perspective, the February low in the SPX (cash) was 1325.02. In other words, 60 handles vs. the futures.
The NASDAQ was trading down 1000 points at 3338.50. Downgrade this morning of Xilinx
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PowerRating), which has carried over into other semi-conductor issues. XLNX called to open $8 lower, putting more pressure on the market.
For this morning, we have support between 3320 and 3305, under that, 3280 down to 3275. Below 3275, look for a move toward yesterday’s low of 3221. We have support between 3225 and 3215. If we break this support, we should trade down to 3170.
Resistance is between 3370 and 3379, then 3395 to 3406. Above this, the market should move toward 3450. We have resistance between 3449 and 3455. If we get above this zone, we could go all the way to 3510.
The Dow continues to wobble as yesterday’s settlement in the cash is nearing the critical 10,550 level. If we close below this level, the market should make a move down to 10,200.