Tight Range

  • January 8, 2002
  • Lewis J. Borsellino

S&Ps are trading up 1.20 at 1168 with light volume overnight as we remain contained in a pretty tight range between 1178 and 1156.

On the upside today, we have resistance between 1169.50 and 1171. If we get above that, we look for a scale-up resistance, choppy trade. The first stop should be 1173.50, followed by a retest of the trading zone between 1176 and 1178. Nasdaq is trading down 350 at 1658. On the upside, the key area is going to be 1668 to 1672. If we get above this, we’re looking for a trade to 1685. On the way, 1679 to 1681 is resistance. If we get above 1685, look for a trade back to the bottom end of our critical zone around 1697, with resistance between 1688 and 1692.

On the downside, 1655 all the way down to 1647 is a support zone. This zone encompasses both Friday’s and yesterday’s lows. Yesterday at 1652 and Friday at 1649. If we get below this zone, we anticipate some basing between 1645 and 1655, followed by a move to 1628.