By Paul Cherney I think the sellers have been vanquished.
If the NASDAQ market really wanted to sell off, Wednesday's intramarket headlines from Cisco gave it all it needed to drop like a rock and never look back... But the market weathered the selling and the bulls tromped back into the fray and pulled prices higher.
Early session price action was also very bullish, the gap lower at the open found buyers moving in during the first 30 minutes of trading. The line of least resistance for the NASDAQ appears to be for higher prices. My caveat from yesterday's end of day comment still stands: advances should be jagged affairs as this market remains nervous and subject to short-term profit-taking, but I think we have already seen the low close for this most recent downturn.
The Nasdaq closed Wednesday's session in a test of intraday resistance in the 2491-2547 area. The next layer of resistance is 2588-2645 and this is another likely spot for a stall and some short-term profit-taking.
Immediate Nasdaq support is 2483-2423 with a focus 2476-2453. Cherney is Market Analyst for Standard & Poor's