Where To From Here?
After Friday’s sharp rally, the question for today becomes, “Where do we go from here?”
This morning, S&Ps are trading down 1 point at 1186.50. On the upside, we expect to see resistance between 1188.50 and 1191. This was a heavily traded zone back nearly two weeks ago. If we get above this zone, the upside target becomes 1200.50. Along the way, 1195.50-1197 is resistance, and then a pocket of resistance between 1200-1202.50.
On the downside, we have support between 1185 and 1181. If we go below this zone, we think the market will begin to retrace some of Friday’s sharp rally.
Nasdaq is trading down 4 at 1578. The big upside target is 1650. Along the way, we’re going to have resistance between 1590 and 1605. If we can get above 1605, we’re looking for 1628 trade.
On the downside, if we cannot get through our first resistance zone and get above 1605, our first target becomes 1560. We have support between 1577 and 1572. Under that, we have support between 1564 and 1558.
The Dow had a very sharp rally on Friday and got above our 10,350-area, which changed our bearish outlook back to a neutral one.