Still Upside for the Nasdaq

The possibility for a close between 1762 and 1781 sometime up to and including the close of trading on May 21 remains valid

By Paul Cherney

The possibility for a Nasdaq close between 1762 and 1781 sometime up to and including the close of trade on Tuesday, May 21, remains valid. At this time I do not have end-of-day indicators at levels I consider predictive. The potential for a Nasdaq close between 1762 and 1781 is based on similar price and volume mpatterns in the past two years.

I would tend to doubt that the Nasdaq can achieve a close above 1762 as of the close on May 21 if the index deteriorates further and closes beneath 1691 either Friday or Monday.

Immediate resistance for the Nasdaq is 1736-1749 then a small shelf 1752-1759. There is a broad band of resistance 1736-1769. Due to the numerous stairsteps in the decline from the March top, major resistance is 1777-1832.

Immediate support for the Nasdaq is 1720-1713 then 1711-1691 with a focus 1707-1700.

Immediate resistances for the S&P 500 are 1102-1114.73 with a focus 1105-1109, and 1117-1133.31 with a focus 1122-1127.

Immediate S&P 500 support is 1092-1085.

Cherney is chief market analyst for Standard & Poor's

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