By Paul Cherney
Caution ahead of the weekend prevented the markets from moving appreciably higher on Friday. The market action was healthy. The fact that the Nasdaq did print below 1379.61 but was unable to attract additional sellers is a positive.
The overall, market conditions look positive. There is some short-term downside risk, probably only intraday, but the volume measures and the chart patterns suggest that higher prices next week are more likely than lower prices.
Potentially bullish ABC patterns remain valid. They would trigger with a Nasdaq close above 1425.73 or an S&P 500 close above 895.90.
Intraday Supports: Immediate intraday support for the S&P 500 is 880.51-876.41. The index has additional support at 875.80-873.47; technically, a case can be made for support all the way to 866, but the chances for jagged trading with some downside risk would increase if the S&P 500 were to print below 873.
Nasdaq intraday support is 1383-1378.
The S&P 500's substantial support is 852-826, with a focus of 848-839.
The Nasdaq's substantial support is 1352-1326.49, with a focus of 1347-1333.
Resistances: S&P 500 resistance is the broad resistance at 887 to 911; the next resistance is 920-935.
Immediate Nasdaq resistance is 1392-1208. The major resistance for the Nasdaq is 1420-1467, with a focus of 1433-1451.
Cherney is chief market analyst for Standard & Poor's