Well Bid
S&Ps are trading at 1127, up 7.50 pts, and that is also about 10.50 over fair value, on strength in the overnight markets and in Europe. For today, the first key area is going to be 1124.50 to 1126.50. If we hold above this zone, it leads to a first target of 1138.
On the support side, obviously we will have a decent size gap on the opening. If we get under 1126.50-1124.50, we are looking for support from 1122.50 and 1118.50. This is critical. The market was heavily traded in this zone yesterday, especially in the afternoon, and it would also include settlement. If this zone fails to hold, the next key level of support is going to be 1116-14.
Nasdaq is trading up 20 at 1555.50. We have resistance between 1560 and 1565. Yesterday’s high was 1564. If we get above this, the first target becomes 1587. Along the way, we have resistance between 1573-76 and 1585-88.
On the downside, the first support will be 1550-46. Under that, we’re looking for 1535 to trade, which will be right around unchanged. On the way to that, expect a very choppy trade without much in the way of momentum. If we get below 1535, the first and key support will be 1531-28.
As for the Dow, the market once again could not settle above the Sept. 10 areas. Its high of the day was above the Sept. 10 levels, therefore, it did fill the gap.