Technical Analysis: Back To Support
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Back to some major support levels for the market. The good news is that the holiday weekend and first-of-the-month inflows could provide some support tomorrow. One report to watch: the ISM manufacturing report at 10 a.m. Eastern Time. The Chicago manufacturing report came in weaker than expected today, and with the national ISM barely hanging on at 51.4, the Fed could be forced to abandon its rate hike campaign if the ISM slips below 50 and manufacturing enters a contraction. The Fed has never raised rates with the ISM below 50. The Nasdaq (first chart below) is right back at the important 2050-2060 support zone, with 2040 and 2032 below that. Ideally, we'd like to see 2055 hold, and so far it has. To the upside, the Nasdaq needs to clear 2077 and 2100. The Dow (second chart) has gone about as far as it can without entering a deeper correction. 10,250-10,263 is critical support, and the index needs to get back above 10,400-10,445. The S&P (third chart) has support at 1188, 1185-1186 and 1180, and resistance is 1200 and 1210.