Up and Up…
S&Ps are trading up 12.00 and 13.00. Volume has been light and in this pre-holiday session should remain light.
On the upside, we have a key area at 1304, 1307.50, 1310, a key at 1313.50, and 1317-1318, which would fill the gap opening from Monday. On the downside, we have an important level at 1296, 1294.50, a key area at 1292, a small at 1290 and major support at 1286.
NASDAQ is trading up 51 handles at 2334. High of the Globex session is 2335. Volume has been light. Nevertheless, it’s very impressive as we are more than 100 handles above cash.
Today, we have support between 2310 and 2290. Below that, 2250-2235, and then yesterday’s low of 2213. If this low does not hold, 2180 is a target. We have support between 2195 and 2170. Resistance is between 2340 to 2355. If we get above that, look for 2390 to trade; that was yesterday’s high. We have resistance between 2385 and 2400.
Above 2400, look for an acceleration to 2450. We have resistance between 2435 and 2455. Any settlement above 2400 is bullish. As for the Dow, very impressive the way it held our 10,300 level yesterday, as the market made the low print of 10,299. We continue to view that level as the key, and consider that while the Dow will not be the leader to the upside, if we stage a massive turnaround in the tech sector, it will nevertheless continue to perform well. We see a trading rally up to the 10,750 level.