By Paul Cherney
I think the equity markets will be working (short-term) higher. This does not mean that every day is a gainer.
Monday or Tuesday (preferably Tuesday), could see a close which is a retracement of some of the gains seen on Friday.
Last week the VIX closed below its 10-day moving average of the close but then reversed. At the time, I had other indicators which were suggesting that a retest of the price ranges established at the lows was possible. We did that. Now, as of Friday, July 5th, the VIX moved to close below it's 10-day exponential moving average (bullish move) and I do not have other indicators which suggest that the lowest lows of the past 10 trade days could be retested.
The NASDAQ has immediate resistance 1449 to 1491, with a focus 1480-1486. The 1480-1486 level has represented formidable resistance in the last weeks of June. The 1496-1540 area is the next layer of resistance. There is a focus of resistance prices 1519-1538.36.
The S&P 500 has immediate resistance 987-1005.58 the focus of resistance in the 1000-1005.58 area has been especially thick. There is a small shelf of resistance 1010-1019 and then 1025-1050 with a focus 1025.93-1039.09.
NASDAQ support: Immediate support is 1424-1401 then 1393-1370.
Immediate support for the S&P 500 is 977-963 then 967-944 which gives a focus of support 967-963.
Cherney is chief market analyst for Standard & Poor's