By Paul Cherney The market got a late day boost on Wednesday, June 5, from confirmation of guidance from Oracle's (ORCL) CEO Larry Ellison. This was a short-term positive for Wednesday's session. This is the kind of headline the markets need to hear more often to create a positive trend in prices.
Price action during Wednesday and Tuesday's market has been positive and more follow-through is likely on Thursday. Overnight systems produced three positive signals (during Tuesday night's run), these were minor signals, but when combined with the chart pattern established on Tuesday and Wednesday, this should keep a positive tone in place for Thursday.
Resistance levels are directly overhead for both the Nasdaq and the S&P 500, but if immediate resistance levels are exceeded, then they are converted to support levels until proven otherwise.
Immediate resistance for the Nasdaq is 1608-1654 with a focus of 1624-1644.
For the S&P 500 immediate resistance is directly overhead at 1050-1056.18. The next resistance is 1063-1097 with a focus of 1079-1086.
Immediate Nasdaq (intraday) support is now 1590-1572 with a focus of 1580-1584.
Immediate support for the S&P 500 is 1044-1031. There is another layer of support at 1022-998. Cherney is chief market analyst for Standard & Poor's