The futures are down a decent bit despite a great earnings report from Apple. Now, when you have stocks going down in spite of great earnings, it is a pretty good confirmation of the market topping out, for the short term at least. So, I decided to have a look at the support levels for S&P.
The red lines show the resistance levels and blue lines the support levels. I am afraid the resistance levels look pretty solid as we can see, with the benefit of hindsight of course :), that the topping out was a slow process and we have the MA(50) acting as the resistance too now.
With the support levels, its a different story. The immediate support is at around the 1091 level and it looks like that might be easily taken out tomorrow. The next support level is 1085. If this breaks, we have minor support at 1070 and then I am afraid, we have to go all the way down to 1030 to find the next major support level. So, it looks like 1085 is the number to watch out for on the S&P tomorrow. If that breaks, we could very easily be seeing 1030 in the near future.
Support levels - 1085,1070,1030
Good Luck tomorrow!
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