Yes, Virginia…
Could it be that there really IS such a thing as a Christmas rally? This morning, S&Ps were trading up 17.30 at 1343.30.
On the way up we have 1346, 1348, 1350 and a key at 1353. Late Friday afternoon, between 1:45 and 2:15 p.m., we rallied from the 1325-area to touch 1349.50. We stalled in between 1343 and 1349.50 for about 20 minutes, and then on the close, the S&Ps came back to 1325. We settled at 1326 which was a contract-low settlement. Other upside targets are 1353, 1355, and a major at 1356.50-1357.
On the downside, we have 1341.50, 1338, 1336, 1333, a key at 1329.50 and a major area between 1325 and 1326. There is a gap in the S&PS from 1349.50 to 1356.50.
NASDAQ was trading up 75.5 at 2678. We have support between 2650 and 2635. Under that, look for a move to 2590. We have support between 2610 and 2590. If we break through that, Friday’s low of 2550 should be challenged.
We have good support between 2555 and 2535. Any trade below this, would target new contract lows. The current contract low is 2480.
Resistance is at 2685 to 2705. If we get above that, look for a move to 2750. We have resistance between 2745 and 2760. Above 2760, expect a move possibly up to the 2810 area. We have resistance between 2790 and 2815.
The Dow is called to open about 100 points higher. Key thing today will be if the big stocks that were down Friday can stabilize.
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