Upside Targets
S&Ps are trading at 1067.10, up 1.80 points with two targets to keep in mind: 1066.50 and then 1071.
Above 1066.50 early in the session, things look moderately bullish. An hourly close above 1071, will be more strongly so. Between 1066.50 and 1071, we have 1068.50 to 1069 as resistance, and then we’d look for a choppy trade between 1070.50 and 1073.
On the downside, the first key number is 1059.50. Any hourly close below that targets a move to 1044. If we were to get a daily settlement below 1044, that would be construed as bearish. Between 1064 and 1059.50 we view this area as neutral/support zone.
Nasdaq is trading at 1285, down 1 point. For today, on the upside the first resistance area will be 1290 to 1293. Above this look for 1305. We have scale-up resistance between 1300 and 1320.
On the downside, if we get below 1280, there is a good chance for a move back to 1269 to 1266 area. This area provided support for the rally to the session highs yesterday at the low in yesterday afternoon’s trade. In this area we think it would be a choppy two-way trade, most likely between 1273 and 1266. Now if we get below 1262, we’re looking for 1240.
The Dow is beginning to consolidate here at higher levels, which is good. Watch how the market will handle selling in the financial issues, which had led the market higher.