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