By Paul Cherney
Historical odds still favor that the S&P 500 should post a close of 911 or lower. I can't change the historical odds, but in Tuesday's session, there were some bullish developments which make me think I am going to be proven wrong about assuming that an S&P 500 close of 911 had to occur before prices can move appreciably higher.
In Tuesday's session, intraday indicators which combine measures of volume and price action in the Nasdaq hit levels which keep a bullish tone in place short-term. Similar readings in the past year have preceded additionally higher prices for the Nasdaq which, in this market, would equate to intraday price prints of 1577 and 1584.
Immediate support for the Nasdaq is now 1519.00-1489, but if prices gap lower on Wednesday's open, buyers might become interested with prints of 1539 and lower.
The S&P 500 has a layer of support 948-935.
Immediate S&P 500 resistance is now from, 951-965.00. S&P 500 at 965.00 represents the high established Aug. 22, 2002. If prices move above this level, even though they might retrace and come back underneath it, it would be positive price action.
The NASDAQ has its next layer of resistance 1554-1594.24 with a focus 1557-1577.
Cherney is chief market analyst for Standard & Poor's