What a Day!
What a day on Wednesday, with a 4600-point range for the S&Ps and the Dow steamrolling through 11,000! However, barring some unforeseen news event, we do not expect this magnitude of an upmove to continue.
This morning, S&Ps are trading down 0.40 at 1288. For today, we have support between 1286.50 and 1283. As long as we can stay above this level, we have targets for the upside of 1300 to 1304. Along the way, 1292.50 to 1294 is resistance, and 1298 to 1299 is light resistance.
If we get below our first support zone, look for a trade down a zone between 1275 and 1273. This zone is critical.
NASDAQ is trading up 11 at 1908. We have resistance from 1915 to 1925, and above this scale-up resistance from 1930 all the way to 1960. On the support side, we have an area between 1895 and 1885. If we get below that, look for a move back to 1855. Along the way, expect a very slow and grind-oriented trade.
As for the Dow, the charts look good. Old economy is hot. Ultimate target for the Dow is now new highs. However, it would not surprise us one bit to see a little consolidation.