Tired Out
It was a tight range in the S&Ps yesterday in a market that is clearly “tired,” and may be taking a breather before the volatilty picks up again. This morning S&Ps are trading up 2.00 at 1169.10, which is about 6.00 points above fair value.
Just like yesterday, we have a resistance zone between 1170 and 1175. If we can get above this, 1182 becomes the target. We have resistance between 1181 and 1183. Above 1184, there is some light resistance between 1188 and 1189.
We have support between 1165 and 1163. We have a key area from yesterday afternoon between 1160 and 1158. Below this, we expect yesterday’s 1156.30 low to be exceeded, and we think the key will be 1153.50 to 1151.
NASDAQ is trading up 11 at 1709.50. For a second day in a row the NASDAQ opened on or near its high, only to trade off the remainder of the session. We have support, which is becoming much more important now, between 1700 and 1680. Beneath 1680, 1650 remains the target.
Resistance-wise, we have 1715 to 1725. If we get above that, 1760 to 1780 comes into play. If we get above 1780, 1815 becomes the next target.
As for the Dow, the market rallied nearly 2% yesterday. Definite interest as we near the end of the quarter. While this may continue throughout the week, we think that near-term the market has run up rather significantly from the lows.