Working The Upside
Helped by the Employment Report, which apparently is allaying some interest-rate fears, S&Ps traded strongly this morning. S&P futures were trading at 1497.50 at late morning, near the high of the day. The low thus far has been 1473.50. Earlier, S&Ps found a support base at 1477.
As we outlined this morning, 1483 was a critical area for S&Ps to rise above. In the pit this morning, between 1482.50 and 1484.50 majors — including Merrill Lynch — bought some 2,000 contracts.
Currently, S&Ps are at the bottom of a cluster that extends through 1498, 1499.50 up to 1500, with 1499.50 being the key. If S&Ps manage to get over 1500, the next targets would be 1501.50, 1503-1503.50, and then 1505.
On the downside, if S&Ps go below 1489 and can’t get over 1491.50, we’ll likely head to the downside targets of 1487.50 and then 1485.
NASDAQ futures are trading strongly this morning despite QCOM, which is down more than $4, and YHOO, which is down $6. The high thus far has been 3933, a key resistance area, and low was made in early trading.
Currently, NASDAQ is trading near the high at 3920 in a broadly, strong market.