Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Upside Potential


By Paul Cherney The type of momentum demonstrated over the past ten trading days usually has a lingering positive effect. Until I see technical evidence to the contrary, I think odds favor limited downside for the Nasdaq and the S&P 500. The line of least resistance is for higher prices.

This coming week is the week of the Triple Witch -- when stock options, stock index options and stock index futures expire on the same day. That will happen on Friday. There could be some hesitation on Monday or Tuesday. Wednesdays are usually the most volatile days of a Triple Witch week (usually openng flat to lower but then gaining strength in the day).

In Friday's session, the Nasdaq tested the meat of the focus of resistance in the 1915-1942 area. This is part of a broader band of resistance which runs from 1901-1960. The next layer of resistance is 1984-2010.

The S&P 500 has a layer of support at 1158-1143. The next layer: 1127-1107, with a focus at 1127-1121 (which is not expected to be tested in the week of the Triple Witch). The S&P 500 has been caught in a band of resistance which runs from 1150-1177. The next resistance above that is at 1190-1206.

Until I see something else technically, I think the line of least resistance is for higher prices. Cherney is market analyst for Standard & Poor's


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus