By Paul Cherney I have been expecting the current consolidation to see an exhaustion of buying power resulting in a rollover and a retest of the price range of Sept. 21 (S&P 500). An S&P 500 close over 1110.61 would force me to abandon concerns about a retracement and I would have to view the 1110-1052 area as support.
Overnight systems based on end-of-day data have maintained a neutral stance on the S&P 500 and the Nasdaq (even after the big price gains of Thursday, Nov. 1, probably due to the lack of convincing volume).
The S&P 500's next resistance is 1101-1111. Above 1111, the next resistance is 1114-1135.52, resistance becomes thick with prints of 1123 and higher. The index has an important price support at 1052. A close below this level opens downside risk for a move to the next layer of support: 1022-1000. That is a "close below" 1052.
The Nasdaq has immediate support at 1741-1726 then 1719-1683 with a focus 1717-1711. The index closed Friday's session inside resistance which is 1722-1754. The next layer of resistance was formed on Oct. 26 and it is 1767-1793.
The Nasdaq has major resistance at 1782-1934. Resistance becomes thicker with prints of 1825-1887.
The DJIA has immediate resistance at 9400-9605.
The DJIA has critical support at 9014-8951.07. Cherney is market analyst for Standard & Poor's