Option Investor
Market Updates

Getting Closer

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I was expecting the markets to lose some steam this afternoon, but they continue to stay pegged near resistance. With over two hours left to go, we could surge past resistance, fade into the close, or remain unchanged. I'm really going out on a limb there.

Dow Jones, S&P 500, and Nasdaq Daily Charts

The Dow looks like it has the best chance to close above resistance at 10,400. If that happens, perhaps 10,600 could be in the cards. Mr. Bailey covered the S&P 500 in his last update, and the index still remains below resistance at 1,202. The Nasdaq probably has the toughest battle ahead of it. 2,060 is the 38.2% retracement level, and a big 'ol gap that formed four days ago. Closing above 2,060 would be good enough for today, but 2,080 would close the gap. So that is what we have to work with this afternoon. Closes above those levels could mean a good Friday, and closes below make tomorrow tough to call.

Jeff Canavan
Assistant Analyst

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