By Paul Cherney Technical measures remain positive, but as explained yesterday, the buying surge on Wednesday used up a lot of short-term demand. More sideways price action appears likely for Friday.
Here are intraday
support levels: Nasdaq, 1,960-1,954.29; S&P 500, 1,120.96-1,117.14. I do not expect these prices to be undercut, but if the Nasdaq 1,954.29 or S&P 500 1,117.14 levels are undercut for more than 4 minutes inside the trading day, that would increase the chances for weaker prices, and a possible test of the Nasdaq 1,937-1,926 area. For the S&P 500 a test of the 1,111-1,108 area would be possible.
But, immediate supports are stacked and a dramatic decline would probably require a headline everyone recognizes as bearish. More sideways action is likely as the markets await the election.
Chart support for the Nasdaq is 1,957-1,934. This chart support along with the overlap of the intraday support mentioned above makes a focus of short-term support at 1,957-1,954.29. Next support is 1,927.51-1,914, then 1,916-1,906.
Chart support for the S&P 500 is 1,119-1,111; the 1,119-1,117 area remains a focus of support. Next organized support is 1,108-1,098.
Resistance for the Nasdaq: there is a small shelf of resistance right at current prices -- 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