Upside Targets
S&Ps are trading up 3.80 at 1195, and face upside targets at 1197.50, 1199.50, 1202.50 and then a critical area at 1204.50.
On the downside, we’re looking at 1193, 1189, and then a major area from 1186.50 to 1184.
Nasdaq is trading at 1640, up 16 points. Today we have resistance between 1645 and 1660. As we get above 1645, we start to retrace the move that was seen off the Beige Book, and as one will recall, we did not trade very heavily in the entire area between 1680 and 1645. So, if we continue higher, we view this entire area as a neutral/resistance zone, so think of it almost as filling a gap.
On the support side, between 1630 and 1615 we have a heavily traded zone, and we expect this to be choppy and neutral. We don’t view it as support, just as a choppy zone. Below 1615, we look for a move to 1595. Along the way, 1602 to 1595 is support.
As for the Dow, a very impressive day on Friday as the Dow bounced directly off the 10,200 level that we have outlined for weeks now and rallied 211 points to settle at 10,411. Now we find ourselves almost right in the middle of our zone between 10,200 and 10,650.