Under Fair Value

S&Ps were at 1334.60, down 40 this morning, which is also about 500 points below fair value.

On the upside, we have 1337, a key area at 1339-1339.50, and a critical area at 1343 and 1345. For the market to get out of immediate trouble, we have to get above 1348.50.

On the downside, we have a key area at 1330, a major area at 1328.50-1328, 1325.50, 1322 and 1319.50.

NASDAQ was trading at 2356.50, down 11.50. For today we have support between 2355 and 2340. If we get below that, the ultimate target becomes 2260.

On the upside, we have the first big resistance between 2375 and 2390. If we can get above this, the late-afternoon highs should come into play as the next stopping point, which were at 2415. However, as we outlined yesterday, we have major support at this level; it has now turned to major resistance in a zone between 2405 and 2428.

For the Dow, the failure at 11,000 is becoming a little more pronounced. We still like it as long as we close above 10,600.