By Paul Cherney
The intermediate term trend (the next couple of weeks) for the Nasdaq and the S&P 500 remains tilted in favor of higher prices.
Nasdaq: Historical odds based on volume and price performance in Wednesday's market favor a lower close on Thursday (and possibly Friday). Technical conditions (and headlines) might prove this technical condition incorrect, but I would be reluctant to embrace any opening strength on Thursday as the beginning of a protracted (all day) trend higher.
The intermediate term remains favorable for higher prices, but the markets need some consolidation. I would not be surprised to see the Nasdaq print in the 2620-2604 area sometime in the next two trade days. If the price pattern which often follows these signals unfolds, chances are good that a drop in prices on Friday will be viewed as a buying opportinuty and a reversal point.
Immediate Nasdaq support is 2668-2604 with a focus 2646-2629. The Nasdaq has substantial support 2646-2576.
Immediate resistance is 2715-2748. There is Major Resistance in the 2760-2916 area. A close inside this area of Major Resistance seems likely before the FOMC meeting.
The S&P 500 is testing immediate resistance in the 1323-1334 area. The next layer of resistance is 1339-1347.
Immediate S&P 500 support is 1323-1313 which is stacked on support 1312-1287.
Cherney is market analyst for Strandard & Poor's