By Paul Cherney
The S&P 500 and the Nasdaq started to act better on Wednesday and these indexes should follow-through on Thursday with another day of gains. One thing I would like to see is a pickup in volume as price advances.
The Nasdaq finished Wednesday's session in a test of resistance in the 2039-2096 area, inside this band of resistance is a focus: 2052-2078, resistance actually runs all the way through 2111. The index has another layer of resistance 2143-2182.
Wednesday's price action in the Nasdaq has confirmed the 2030-1995 area as valid support. The next substantial layer of support (based on the charts) is 1962-1868.
The S&P 500 finished Wednesday's session in a test of immediate resistance which is 1223-1238. Next resistance is 1253-1273. Immediate supports are 1212-1202 then 1193-1158.
Cherney is Market Analyst for Standard & Poor's