Trading Up
S&Ps are trading up 1170 at 1191.50 on decent volume, following a strong reversal on the Nikkei, which closed up nearly 3%.
Today for the S&Ps, we have a key neutral zone between 1182 and 1186.50. As long as we hold above this zone, we think we should exceed yesterday’s high of 1200 – and most likely make a move to the 1205 level. If we get above 1205, we have strong resistance between 1208 and 1214.
On the downside, if we fail at our neutral zone, look for a move to 1170. Along the way, we have support between 1177 and 1175. If we get beneath 1170, we think yesterday’s low will be exceeed, which was 1165.50.
NASDAQ is trading up 52 handles at 1828 — just off yesterday’s high of 1832. For today, we have support between 1810 and 1795. If we get below this level, look for the market to fill the gap, which will take us down to 1776.
Along the way, we have support between 1780 and 1768. If we get under this, look for 1725.
On the upside, we have resistance between 1825 and 1845. 1835 fills a leftover gap from Monday. If we get above 1845 on an hourly close, we would expect follow-through buying, which would take us up to the 1900-target leftover from yesterday. Along the way 1865 to 1875 is resistance.
Dow had its first close under 10,000 since Oct 18, 2000. We have very good support as outlined earlier between 10,000 and 9700.