By Paul Cherney
It is difficult (if not impossible) to assess just how much of Wednesday's action was the result of the unwinding of hedges for soon-to-expire put options on the large-cap techs of the NASDAQ (which have suffered in the decline since the beginning of February). There was enough positive momentum created in Wednesday's session to tilt the odds in favor of gains on Thursday for the NASDAQ.
The NASDAQ has immediate (intraday) immediate support 2488-2468. Additional support is 2447-2417. The index finished the session in a test of resistance in the 2483-2504; there is thick resistance 2523-2555.
The S&P 500 has immediate support in the 1322-1311 area. This focus is within a broader area of support, which is 1329-1301. Immediate S&P 500 resistance is 1332-1339 then MAJOR, brick wall resistance is 1351-1389 with a focus in the 1353-1368 area.
Cherney is market analyst for Standard & Poor's