By Paul Cherney
If it works, don't fix it. Right now, I am willing to give the Nasdaq market more time to move higher. After examining the historic performance in the wake of the 3/1/01 overnight systems signal (short-term positive, usually signaling that aggressive selling is near an end), it looks like Friday (3/9/01) or Monday (3/12/01) have the highest chances of producing the best closing gains for the Nasdaq (based on price performance in the 10 trade days after the signals which occurred during the year 2000).
When would I become concerned about being wrong about the upside?
If I saw the Nasdaq start printing below the 2188 mark for anything more than 3 or 4 minutes without attracting buyers.
On an "end-of-day" chart basis, the former focus of resistance is now immediate support for the Nasdaq, meaning that 2204-2188 is immediate support. A review of the intraday price action from Tuesday's market shows immediate (intraday) support for the Nasdaq in the 2231-2216 area and that is where the index finished Wednesday's session.
The Nasdaq has resistance levels at 2249-2287, then 2314-2351.
The S&P 500 has immediate support at 1253-1240. Considerable resistance is evident in the 1274-1293 area.
Cherney is Market Analyst for Standard & Poor's