Tighter And Tighter
Volatility continues to be squeezed in this market, even though we are in the midst of a decline.
S&Ps are trading down 6.20 at 1217.70. For today, we have resistance at 1219, then 1221 and 1223.50. If we get above that level, the next target is 1227, followed by a band of resistance at 1230 to 1235.
On the downside, we have Monday’s low at 1216, then Tuesday’s low at 1215.50, and Friday’s low area at 1211-1212. We have a band of support between 1212.50 and 1209.50.
NASDAQ is trading down 26 at 1670 on a warning from TLAB. That is below cash and below yesterday’s low of 1672. Our 1650 target should be the first area on the downside. We expect a strong two-way trade between 1665 and 1650. If we get below 1650, we have support between 1642 and 1635.
On the upside, we have resistance between 1675 and 1685. Contained in that zone are Friday’s low, Monday’s low and Tuesday’s low. If we get above this, look for 1710. Unchanged is 1696.
As for the Dow, the market continues to try and build a base.