Waiting For The News
S&Ps are trading up 400 pts at 1163.50 and about 500 pts above fair value in a market that is awaiting the release of four economic reports including Consumer Confidence and Chicago Purchasing Managers.
For today on the upside we have a bullish bias as long as the market is above 1156.50. We have a resistance zone between 1164 and 1166.50. Above that the next key area is 1169.20 to 1170.50.
On the downside, we have support between 1160.50 and 1159. Under that, 1157.50 to our key level of 1156.50. Below 1156.50 we should test yesterday’s low of 1151.50.
Nasdaq is trading up 16.50 at 1630, which is above yesterday’s session high of 1622 and also above our key resistance zone between 1619 and 1628. On the open we expect this zone to be critical.
The first key resistance area is going to be 1638 to 1641. Above 1641, we have a minor target of 1652.
On the support side, if we get below 1619, 1615-13 is support. But below that, we expect a move down to 1601. Along the way, 1609-07 is support, and then 1602 to 1598.