Tight Range
S&Ps are still stuck in a relatively tight range, and it may take awhile to get a better setup. On the upside, there will be a small improvement if S&Ps can hold above 864, but to improve the outlook significantly they would have to get above 866. As stated in the Morning Meeting, we have a cluster of resistance above that from 868 to 872.
On the downside, as long as they have trouble staying over 862.50, the risk is still on the downside with the next targets at 860-859.50, then 858.
The Nasdaq and the Semiconductors (SOX) are holding up better than the S&P’s which is usually a good sign for the upside. However they will have to show staying power above 1027.50 to encourage the buyers. On the downside, if they go below 1021.50, Nasdaq should test the low area again at 1020-1019.