What Goes Down…
After a sharp sell-off on late Friday afternoon, S&P futures rebounded this morning as the election drama continues to unfold.
S&Ps were trading at 1391.50, up about 32.00 points. This is the area where we broke late Friday afternoon on the Florida Supreme Court ruling. It was also the first intraday high made in the morning before a morning retracement.
On the upside, we have 1393.50, 1397.50, 1400, 1404, which was Friday’s high, and a key area at 1405.50. Above that, we have 1408.50, 1410, and a major objective at 1413.50.
On the downside, 1388.50, last week’s weekly pivot at 1382-1383, 1379, a key area at 1376, and a major at 1372.50.
NASDAQ was trading limit up at 2902.50, plus 95 handles and some 40 points below fair value. The market seems to have reversed all of Friday’s late-session sell-off.
On the upside, to get back to the normal premium level, we will have to trade up to the 2940-2950 area. If they don’t go below 2995 and the market spends most of the first two hours over 2925, the market should try for at least 2960 and then Friday’s high at 2975-2980. We have major support at 2885 and support at 2850 and 2813.
Dow cash is at 10,712. Dow futures are trading at 10,840, up 210. We expect a key resistance area in Dow cash at 10,908-10,921. The support area is 10,803, 10,789 and 10,761.
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