Monday Market Outlook: Lichtenstein Sees High-Energy Trading, Strong Downside Resistance Levels

Every Monday, Benzinga Radio brings you trading intel from the floor of the CBOT with TradersAudio.com's Ben Lichtenstein.

Don't expect an end to three months of market drama this week – but at least we have strong support on the downside. Key resistance levels have shown resilience in recent probings by the market, says Lichtenstein. The S&P's long term balance area continues to reside between 1200 and 1100. Until markets breach this with conviction, look for sideways development: “I think we'll either reject this 1150 level and we'll be back in new lows below 1100 or we'll chip around inside this range throughout the week.” Watch the 1126 level as another key point of resistance.
Lichtenstein's bottom line: Traders are still working with lows determined in July and August, so don't look for paradigm shifts until markets crash through those levels with conviction. “It's been high energy, it's been scary, but have we done any real damage yet? No.”