Waiting For The Fed…
S&Ps are up 50 cents at 1166, 1 point above fair value, in a market that is awaiting the FOMC meeting on Tuesday.
Today our first level on the upside is 1168 to 1169. If we get above this level, the upside objective becomes 1178. Along the way, 1171.50 to 1173.50 is resistance, followed by 1177 to 1179. We would expect a very choppy trade between 1172 and 1178.
On the downside, if they fail at our first resistance between 1168 and 1169, we’ll look for a choppy move down to the 1163 to 1161.50 area. Below this, we’ll look for a retest of Friday’s low of 1158.40. We have support between 1159 and 1157.
Nasdaq is trading up 9 at 1530. For today, first resistance on the upside is 1535 to 1540. If we get above this, the target becomes 1560. Above 1560, expect a very choppy trade in a large resistance zone between 1570 and 1588, our old friend.
On the downside, the first support is going to be found between 1520 and 1517; this includes Friday’s low of 1519. Below this, look for 1508. We have support between 1513 and 1507.
As for the Dow, it staged a final 30-minute rally on Friday to settle above our key 10,200 level at 10,240. This area continues to be critical, and we’ll see how it plays out today.