Bloomberg the Company & Products

Bloomberg Anywhere Login

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

Will the Rally Run Out of Gas?


By Paul Cherney Technical measures are positive.

The following comment is based on my interpretation of the configurations I am seeing in 60-minute measures: Thursday, Oct. 28, could see an additional jump in the morning -- but then sideways trading. There is a potential for the sideways price action to persist for a few trading days. This is what I think will be the case unless I see something else in the overnight systems run or intraday on Thursday.

A lot of the buying demand on Wednesday was related to relief that oil prices finally dropped. That satisfied a lot of short-term buying interest and unless the CBOE volatility index, or VXO, can drop under 15.83 or crude oil continues to drop, price strength on Thursday might just see an equilibrium develop between buyers and sellers develop that keeps prices moving sideways.

Chart

support for the Nasdaq is 1,957-1,934, then 1,927.51-1,914, then 1,916-1,906.

Chart support for the S&P 500 is 1,119-1,111, then 1,108-1,098.

Resistance for the Nasdaq: there is a small shelf of resistance right at current prices: 1,960-1,971.04, and directly above this layer, there is a well-defined brick wall at 1,972-2,006.58; this is all part of the 1,960-2,055 band of resistance.

The S&P 500 has resistance at 1,127-1,142.05, with thick resistance at 1,132-1,142.05 (a likely stall zone). Next resistance is 1,147-1,163.23. There is a focus of resistance at 1,147-1,150.57. Cherney is chief market analyst for Standard & Poor's


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus