Will The Rally Continue?
S&Ps are trading down 3.00 at 1151.20, which is well below fair value.
For today, on the upside we have resistance between 1156.50 and 1158. This area is going to be the key for a continuation to yesterday afternoon’s rally. If we can get above 1158, the first upside target becomes a trading zone between 1164.50 and 1167.
On the downside, we have minor support between 1153 and 1150.50. If we get below this support zone, 1143 becomes the target. Along the way to 1143, minor stopping points will be 1149 and 1145.
Nasdaq is trading up 5.50 at 1623, which was our target from yesterday. As we said yesterday, above 1620 we feel that this trade becomes a little more dicey from the long side. For us, the key is going to be how the market acts above 1640.
On the support side, below unchanged at 1617.50, the first target becomes 1608. We would expect a choppy move down to this 1608 level.
The Dow had a good rally along with the whole market into the close yesterday. The same issue applies: near-term resistance is at 10,100 and then the ballgame resistance is around 10,200.