The market spent bouncing around Monday, first trading higher,then lower and then higher again. It was supported by durable goods order which came out to be positive. Housing starts came up higher as well, which also gave the markets some underlying support. At the close the Dow was down about 14 points.Market overall is overbought and still trying to find some direction. A lot of new money is being poured into the market. What is cautionary is that the vix is very low and that suggests a very laid back investor attitude, which is not good in the short run.Though the short term count suggests that if the Dow has to go higher, it should findSupport in the 1493 area in the SPX. If that area is breached, the Dow could sell off and the market in the SPX could trade in the next support level at 1475 area, and then 1460-65 area in the SPX.
Authoir Name: Zafar Sheikh