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A Tough Climb

By Paul Cherney Intraday indicators for both the Nasdaq and the NYSE reached levels on Friday which usually carry a residual positive effect on prices which can last for several trading days. This does not mean that there can't be a down day. Intraday price action on Tuesday, an opening dip that fails to garner follow-through, is typical of trading after the signals which fired on Friday.

The Nasdaq has multiple levels of

resistance which might be a contributing factor to the seesaw price action.

To sum up Nasdaq resistance, here are the thickest layers where stalls in an advance would be more likely: 1,908-1,913 and 1,925-1,937. The immediate chart resistance runs 1,908-1,946.23.

S&P 500 resistance is 1,032.60-1,050, based on intraday price action from June, 2003. There is a focus of resistance at 1,035-1,041. The next resistance is big at 1,048-1,107, established in March, 2002. The 1,048-1,107 resistance has especially thick price traffic (resistance) at 1,068-1,107.

Two different measures of the potential upside for the S&P 500 after the early September bullish breakout to the upside (above the 1,015 level) target 1,047 and 1,070 as potential upside prints.

Immediate intraday

support for the Nasdaq is 1,892-1,877, 1,882-1,870. Another layer of support is 1,856-1,827.

The Nasdaq chart has a gap in prices which runs 1,864.54-1,842.55, in the event there is aggressive profit-taking and prices move into this gap (meaning print below 1,864.54), I would expect to see accumulation taking place. There is no market law that says price gaps have to get filled.

The S&P 500 has immediate support at 1,034-1,028 and 1,026-1,014, with a focus of support at 1,023-1,018. Cherney is chief market analyst for Standard & Poor's

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