By Paul Cherney
The markets are consoldiating the recent gains.
Downside appears limited, but upside also appears limited.
Disappointing expectations for revenue growth going forward clobbered PMC-Sierra (PMCS ) in Friday's market, but the Nasdaq recovered from an opening gap lower and that is the kind of price action you see in a bull-leg.
Barring any new technical developments, before the FOMC's announcement on Jan. 31, I think we should see a Nasdaq close back above the 2814 level probably in the 2840-2873 area, but maybe even higher.
Immediate (intraday) support for the NASDAQ is 2757-2730. Additional support is 2700-2611 (Friday's intraday low was 2686 and it occurred in the first 20 minutes of trading).
Immediate Nasdaq resistance is 2814-2893.
The S&P 500 has immediate support in the 1347-1339 area, Friday's low print was 1342.75.
The S&P 500 has a substantial layer of resistance in the 1351-1389 area.
Cherney is market analyst for Standard & Poor's