How about those settle prices today. Both indexes finally found a common ground for the first time in awhile. It all but kept the beat of the drum to higher ground. I mentioned that paper came into the s&p pit and sold between 300-400 contracts starting between the 2236.00-2236.50 area. The selling came in after a retest spot on the high of 2238.50. I really thought that paper selling was going to key a move south, but it goes to show you how important the opening print is on the 8:30 a.m. bell. That opening print was the last spot on low after the paper selling and with it came a clap of thunder that rolled a move up to test a resistance price of 2243.75, high 2243.25. A move to the 2241.50 price followed with new highs currently at 2245.00. It questions if it can find that last low of 2241.50, but more importantly that double top test high of 2238.50.
I would think an offer of the 2238.50 price would stop the march to higher ground, but it’s bee awful hard to fight the bull the last couple of days, so the daily fib of 2248.50 is a next target, along with are resistance price at 2256.25. I don’t expect it roll to higher ground like yesterday, but expecting the unexpected one never knows. The Nasdaq after finding a last low of 4844.50 worked sideways for well over an hour before making new highs at 4867.00. A higher low of 4852.50 kept the pace to the positive end and with it came new highs by 50 cents, 4867.50.
However, another higher low at 4860.50 did return to make new highs at 4869.50, falling short of a next resistance price of 4875.00 with the daily fib of 4888.00 waiting as well on top. As I write that last higher low of 4860.50 has been breached, so now its off to the 4852.50 price. The key is the opening print of 4849.25 from this mornings open. In the back of my mind I can’t help but think the short value will be looked for, 4826.25 at some point. If not today, it will be addressed in the near term future. Decision time and the stochs and rsi indicators are showing these two well overbought signals…an pull back in order?
by Tim Haefke