Holding Pattern

Unless some development forces either buying or selling, the market is likely to be stuck moving sideways

By Paul Cherney

These markets are in the hands of short-term traders as longer-term investors might occasionally move in to pick up a percieved bargain, but the bulk of long-term investors are content to stay on the sidelines until a clearer picture of the future evolves.

On balance, Nasdaq and S&P 500 end-of-day indicators and systems remain in neutral.

The markets are waiting for some sort of a headline to force action (either buying or selling) and until we get it, or there is a technical development which shifts odds to favor buying or selling, then I have to assume we are stuck moving sideways.

Nasdaq support as 1838-1812. If 1812 is broken then there is a relatively open space on the charts and the next support does not appear until 1785-1721.

The Nasdaq has immediate resistance 1862-1923 with a focus 1862-1881 then 1897-1916.

The S&P 500 has immediate support in the 1153-1119 area, within this support band is a focus of support 1143-1128. Immediate resistance is now 1165-1170. Considerable resistance is 1174-1186.

Cherney is market analyst for Standard & Poor's

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