Today: The S&P futures Friday traded down into the long term support are of
the 1040’s, and then finally seem to get some footing with a descent rally up out
of the hole. This morning the futures are trading steady to higher, posting a
high thus far this session at 1066.75. Europe opened and traded a bit higher,
and then as the morning has wore on, they seem to be showing a small amount
of weakness. I would by no means say that we are out of the woodwork on this
down move, however it seems unlikely that we would go for the Friday low in
today’s session. I would measure the resolve of this index using three price
levels today. Above 1066.50, and the index most likely looks to trade into the
70’s handle, mainly the 1072.00 resistance level would get tested. Trading at
1064.00, and there is a neutral stance, where we have a relatively quiet, and
range bound type trade session, and then finally 1061.25. If below 1061.25,
then weakness sets in and we trade lower, down to 1057.50 initially, and then a
test of 1054.00. If we proceed lower than that, then this index becomes
completely vulnerable for a sell-off that could re-engage the low area set on
unemployment Friday.

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