By Paul Cherney
Technical measures are positive and until that changes, assume a positive trend for prices. That does not mean that every single day is a gainer.
The S&P 500 has stacked support at 1,149-1,135, then 1,135.67-1,129.94, then 1,125-1,113. Next support is 1,101-1,087.06. Immediate intraday support for the S&P 500 is a ledge at 1,145-1,141.70.
Immediate Nasdaq support is 2,064-2,049, then 2,036-2,011; there is a focus at 2,036-2,024. The Nasdaq has a shelf of intraday support at 2,064.94-2,054.34. I include this "intraday" support because truly bullish markets can move lower, but if buyers come in above even minor support points and turn prices higher, that's usually a short-term bullish sign. Think about it: Traders and investors can't wait for prices to test support.
The Nasdaq created a gap in the price chart on Friday, Apr. 2. The gap remains open at 2,037.19-2,019.09, but as long as technical measures remain at current levels, it is unlikely that this gap in the chart will be visited. The index has a well defined daily bar chart support at 2,019-1,960.
The S&P 500 has a band of resistance at 1,149-1,176.97, with a layer of resistance inside this zone at 1,149-1,158.98. I have reviewed charts from March, 2002, and there is a well-defined layer of resistance for the S&P 500 at 1,166.27-1,173.94.
The Nasdaq has resistance at 2,072-2,102. This resistance has a focus of resistance at 2,072-2,091. Next resistance above 2,102 is 2,108-2,153.83. Any time resistance is exceeded it must be treated as support until proven otherwise.
Cherney is chief market analyst for Standard & Poor's