By Paul Cherney
I still think there is limited downside. I am not going to expect upside which can last for more than just one or two trade days until I see the VIX (the Chicago Board of Options Exchange's market volatility index) close below its 10-day exponential moving average, which finished Monday near 35.80. The VIX finished Monday's session at 39.30, but the intraday action on Monday (in the VIX) may have set momentum in gear to produce a day of higher stock prices on Tuesday.
If there is a dip in prices at Tuesday's open and if that dip does not see prices spend more than 3 or 4 minutes below Nasdaq 1348 or S&P 500 901, then bears holding short-positions could easily feel the pressure to buy (this is what I expect).
The S&P 500 has immediate resistance at 927-934, then 958-977.
The Nasdaq has immediate resistance at 1393-1415, then 1430-1486.
The S&P 500 has immediate support at 914-893, with a focus 906-896. Additional support is 895-855, with a shelf of support 895-976.
The Nasdaq has immediate support at 1354-1318.
Cherney is chief market analyst for Standard & Poor's