By Paul Cherney From Cherney Market Analysis
I think these markets are tired and profit-taking pressures are building. These conditions have potential to limit the upside, but supports have not been broken yet, so there still is potential for a move higher (daily charts). I expect to see something more to the upside because even though there has not been a huge advance in the indexes in reaction to the better than expected earnings reports, there are still more reports to come.
Prices are stuck sideways right now, but declines in prices intraday are not attracting aggressive sellers, so the buyers are probably not finished buying yet.
Prices for the Nasdaq and the S&P 500 are in areas of the charts where resistance is considerable. For now, there has been no breakdown. I think the seeds for profit-taking have been planted, but unless the Nasdaq posts a close below 2144.78, or the S&P 500 posts a close below 1212.21, then the prospects for something more to the upside remain in place.
Immediate Intraday Resistances:
Nasdaq immediate intraday resistance is 2175-2193.19; resistance gets thick at 2186.01-2193.19.
If the Nasdaq can push above 2193.19, Nasdaq intraday resistance based on intraday prices from May and June, 2001, finds the next layer of intraday resistance at 2205.54-2264.58 with a distinct layer of resistance at 2211-2249, focus 2211-2233.33.
S&P 500 intraday resistance starts at 1231 and becomes thick at 1232.32-1238.36. The next meaningful focus of resistance is 1249.23-1267.
Immediate Intraday Supports:
Nasdaq support: 2167-2144.78, with a thin shelf at 2135-2122.
S&P 500 has immediate intraday support at 1231.79-1223.03, with a focus at 1226.07-1224.70. There is a thin shelf of support at 1219-1215, then 1206-1183.
S&P 500 resistance is 1232-1286.62, with a focus of resistance at 1249.23-1267; a test of this focus is still possible, but a move below 1212 would raise doubts about that event in the month of August.
Nasdaq daily charts resistance above 2193.19 becomes thick at 2263.75-2328.05.