Stuck in Neutral

The trend looks like sideways action -- with a negative bias -- until the market shows it can overcome resistance levels

By Paul Cherney

Technically, we are just above price levels for both the Nasdaq and the S&P 500 which look like natural support, but the markets have been unable to produce anything to the upside.

Until the market demonstrates the ability to overcome resistance levels, I have to assume sideways action with a negative bias.

Investors are not willing to commit to the long side ahead of the first quarter earnings reports -- which will begin to arrive in full force next week.

Immediate Nasdaq support is 1765-1742. The S&P 500 has a focus of support 1119-1113.

Immediate intraday resistance for the Nasdaq is 1786-1803 then 1808-1822.

The S&P 500 has immediate resistance 1126-1136 then 1142-1157.

The S&P 500 has immediate support 1124-1106 with a focus 1119-1113. If tested, this area should hold on a closing basis and still has the potential to produce a rebound in prices.

Cherney is market analyst for Standard & Poor's

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