What Goes Up…
Despite yesterday’s rally, today’s market is trading signficantly lower, down 12.30 at 1172.80 as the market continues to question when a recovery might take place.
On the downside, the first key level is 1170, and then yesterday’s low and the low of summer of 1168. Under that, look for 1164.50 and then 1160.
On the upside, we have 1174.50, then 1177.50 and 1180. The key this morning is going to be 1174 to 1176, and we are opening up in a critical area at 1172.
Nasdaq is trading down 36 at 1557.50. This should be an extremely interesting day, as yesterday the market was able to bounce after strong selling on the open. Now the market finds itself right back below 1560 this morning.
For today, we have a key area of support between 1558 and 1547. If we get below that, we think we’ll test yesterday’s low of 1532. Along the way we would have support at 1540 down to 1528.
On the upside, 1565 to 1571 is resistance, and above that 1585 to 1595. If we can get above this, we would expect the odds for a strong rally to increase and possibly take us as high as 1650.
As for the Dow, the market was able to bounce off the lows yesterday. The lows were well above the 10,200 level at 10,273. We continue to rate this market bearish/neutral.