By Paul Cherney The line of least resistance is for higher prices. But some sort of retracement is overdue. When I see an advance which does not garner good volume, (or some other technical condition arises), then I will become concerned about downside, right now I still think the trend is higher.
The Nasdaq ended Friday's session in another test of a focus of resistance in the 2143-2182 area. The next broad layer of resistance is 2184-2354. Inside of this resistance there are ledges of resistance the first one is 2233-2264. Immediate (intraday) support for the Nasdaq is now 2130-2074 and this level could easily be tested in a short-term profit-taking retracement early next week.
The S&P 500 has immediate support 1238-1223 then 1212-1202 then 1193-1158. The index has immediate resistance in the 1253-1273 area. Cherney is Market Analyst for Standard & Poor's