This Is The Key Support Level On The S&P

• October 15, 2004
• Mark Melin

Thursday Recap:  In
our prediction yesterday we said that the cash Dow could test significant
support with a touch of both sides of the flat line. 
That in fact occurred, as the cash Dow started the day mixed and then
moved to the downside, breaking key support. 
You’ll note that in yesterday’s chart (posted below with the addition
of the recent price action) we said that if the cash Dow broke support at the
10,000 level it would likely lead us to the 9900 level or lower. 
That’s pretty much where the market ended the day, down some 107 points
to end the day at 9894. 

Prediction for
Friday: The markets might find some buyers on early Friday, but
ultimately we could move to test support once again. 
The key support I’ll watch will be the 1100-02 level on the S+P. 
If this is broken, we could see the 990-93 level rather quickly. 
The bottom line is that until the election concludes this is going to be
a frenetic, unpredictable environment.  Right
now the major stock indices reflect the uncertainty in the race for president,
and until this is cleared we will continue to see a mess of a market.