Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


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.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Downside Risk Appears Limited

By Paul Cherney Some of Thursday's price action (to the upside) was probably the product of nervous bears covering outstanding short positions, scared into covering after the bullish interpretation of the minutes from the Fed's Oct. 28 meeting. That short-sided buying interest is probably finished for Friday and there could easily be a little downside pressure and some profit-taking ahead of the weekend, but immediate downside risk appears limited.

Seasonal strength and strong hands on the long-side suggest that a majority of the investors are probably more willing to risk a day of retracement (potentially tomorrow) and maintain long positions in anticipation of additional upside before the end of the year.

Even though market measures did not reach oversold levels seen at previous swing lows, downside risk appears limited and prices should try to work a little higher. It would not be a surprise though to see prices make a small dip on Friday, even closing with a loss on the day.

Immediate Nasdaq

resistance starts to get thick at 1,956 and higher. Resistance becomes very thick at 1,966-1,978, but runs all the way to 2,011.25.

Immediate Nasdaq chart

support is 1,931-1,923.09. More substantial support, which stemmed the decline in prices on Wednesday, is 1,916-1,878 with a focus at 1,907-1,896.

The S&P 500 has a brick wall of resistance at 1,068-1,090.

Immediate support for the S&P 500 is 1,068-1,065; more substantial support, which held during Wednesday's decline, is 1,060-1,052. Cherney is chief market analyst for Standard & Poor's

blog comments powered by Disqus