Witch Week
Negative news from Nokia
(
NOK |
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PowerRating) has pulled this market sharply lower, but be aware that this is triple-witching week, which often sees a low made early in the week followed by a rally into Friday.
S&Ps are trading down 10.10 pts at 1255.90 on heavy volume of about 2800 contracts overnight. Our support area was 1260 to 1257. That should now turn to resistance. If we get above 1260, look for some of this downdraft to be retraced, possibly to the unchanged level of 1266. Along the way, 1263 to 1264 is critical.
On the support side, the first level is between 1250 and 1249. If we get a 30-minute close below 1260 — and that is looking extremely probable — we are targeting 1242.
NASDAQ is trading at 1820 down 51. We have key support between 1820 and 1805. If we get below this, limit down should be reached at 1786.
On the resistance side, if we can turn it around, we have resistance between 1845 and 1850. If get above 1850, look for an acceleration up to 1885 and then strong resistance between 1885 and 1905.
The Dow must remain above 10,750 on a closing basis.
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