Upside Target
S&Ps are up 1.10 pts at 1116.60. On the upside, our first target is 1125, which is valid as long as SPH stays above a support zone between 1105.50 and 1104.50. On the way to 1125, 1115-1117.80 is a resistance/neutral zone. Getting above this to the 1120.50-1121 level, we have a resistance zone between 1120 and 1121.80.
On the downside, if we trade below 1115, look for a move down to 1111.50. We have support between 1112 and 1111. Below this, look for some of the final-hour rally to be retraced. The market should make a move to test the key support zone at 1105.5-1104.50.
Nasdaq is up 12 at 1553.50. We’re opening right in a resistance zone between 1552 and 1555. If we get above this, our key area between 1564 and 1568 comes into play. On the way, 1570-71 is resistance, then 1575-76, and the key area is 1581-86.
On the downside, our first key area is going to be 1546-42. If we cannot hold the bid there, look for a quick spike toward the 1530 level. Along the way to 1530, 1537-35 is support, and we’ll see 1532-1528 as the key support.