Weaker Link
S&Ps have been weaker today than Nasdaq and its proxy the Semiconductors (SOX). With S&Ps at 837, we have support at 835. As mentioned in the Morning Meeting, we have a pivotal area at 834.90 and major support at 834.
Under this, we have a large cluster from 833 to 830.50. We would expect that cluster to hold, especially if Nasdaq is over 1000.
On the upside, the outlook would improve to “neutral” over 839.50. For better staying power, S&Ps would need to trade above 842.
The longer Nasdaq spends below 1004, the more likely it will head for 1000 and below that 998-997. On the upside, especially if there is improvement in the SOX, Nasdaq would have to get above 1005. If that happens, we would look for a test of 1008.