By Paul Cherney
Tuesday's price action fulfilled (much sooner than I thought possible) expectations for NASDAQ prints below the 2288 level. Tuesday's low print was 2273.07.
Now what? I have to look at this market just day to day. The most bullish short-term development for Wednesday's market would be a Nasdaq gap lower at the opening and then more selling which pushes the Nasdaq Composite into or below the first line of support which is 2236-2157. If prices were to drop below 2236, I think this would create attractive prices for bears to cover open short positions and the market could find a bottom in the 10:15-11:30 a.m. EST timeframe.
Immediate Nasdaq resistance is 2299-2333 then The Nasdaq has intraday resistance in the 2367-2402 area. There is a focus of resistance in the 2367-2389 area.
Cherney is market analyst for Standard & Poor's