Waiting…
In the S&P market yesterday, at no time during the day did we have an hourly range of more than 10.00 points. We’re looking for the same action today as we await Thursday’s news — ECI and Greenspan’s testimony.
This morning, S&Ps are up 2.00 at 1368. On the upside, for this rally to continue, we have to spend most of the morning above 1370. We have resistance at 1370.50, 1373, a key area at 1375.50 and a major at 1377. If we sustain above 1376.50, look for 1380, 1381.50 and 1386.50.
On the downside, we have 1363.50, 1359.50-1360, then a major at 1357.50, a small at 1355, then 1351.50, and 1347.50.
NASDAQ is up 20 handles at 2765, but that is 30 off the high. If we open here, we’re right in a key area. Yesterday’s session high was 2760. Last Friday’s high was 2765. We have made a move above this level in Globex. Now it will be whether this market can hang onto it.
For today, we have support at 2750 to 2730. Below that we have 2715 to 2710, then 2685 to 2675. If we trade below this level, we have support between 2650 and 2640. Limit down comes in at 2680. If we were to trade through this, there is a chance we could go as low as 2620.
We have resistance from 2780 to 2805. If we get above that, there is a chance to a move to 2850. We have resistance between 2845 and 2860.
Dow is the same thing: we like it above 10,800 and we don’t below 10,400.