Will We See Consolidation?

S&Ps are trading at 1169.80, up 1.10 pts, raising the question of when we will begin to see consolidation after the strong upmoves in this market.

For today, on the upside, the first key area is going to be 1171-74, which is where there was strong institutional selling yesterday. We feel it will be a difficult area for the market to get above. If we do, the 1176-76.50 area becomes key resistance. Above this, 1183.50 becomes the target.

On the downside, the first leg of support will be 1169-67.50. If we get below this, we have scale-down support all the way to 1159. But the key is going to be 1164 to 1161. This was a heavily traded zone yesterday. If we cannot hold support here, there is a good chance for a move back to 1155.

Nasdaq is trading up 0.50 at 1721.50. For today on the resistance side, look for 1725-1735. We expect a choppy two-way trade up to that zone. Above 1735, 1752 is our target. On the way, the key area will be 1743-44, and then 1750-55. Above 1755, look for a move possibly to 1768.

The first leg of support is 1715 to 1708. Below this, look for yesterday afternoon’s low at 1695. We have support between 1699 and 1694. Below this is the key: 1690-83. Only if we take this area out does the upside look unattractive.