Tight Range
S&Ps are trading at 1089.50 in a very quiet market with a tight range. We have an important zone from 1089.50 down to 1087.50. This zone is where much of our trading time was spent earlier in the week before S&Ps broke lower and eventually filled the gap at 1075.80. If we cannot get above 1090.50 to 1091, lower prices should prevail.
As we stated in the Morning Meeting, the market was disappointed earlier by a lowering of the GDP reading for Q1. However, that is “old news,” not forward-looking. Also remember that market have early closings today, with the exception of equities.
Nasdaq is trading at 1259. Earlier the market traded lower on weakness in the Semiconductor Index (SOX), but then bounced higher. We expect the upside to be capped between 1266 and 1270.
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