The Trend Remains for Higher Prices
By Paul Cherney
The trend (for the next 5 to 8 trade days) for the Nasdaq and the S&P 500 remains tilted in favor of higher prices.
Friday is options expiration day and judging by all the price movement and the number of options contracts traded at the CBOE in the past two sessions, a lot of Friday's thunder (and volatility) may have already been used up in Wednesday and Thursday's markets.
Immediate Nasdaq support is 2748-2714 with a focus of support 2748-2734. Additional support is 2698-2661 then 2646-2604. The Nasdaq has substantial support 2646-2576. A worst case scenario is now prints of 2646-2610.
The Nasdaq is testing a large band of resistance in the 2760-2916 area within this area the first focus of resistance is in the 2775-2812 area.
The S&P 500 has managed to close at the top of a band of resistance in the 1339-1347 area. The next layer of resistance is considerable: 1351-1389.
Immediate S&P 500 support is 1334-1311 which is stacked on support 1312-1287.
Cherney is market analyst for Standard & Poor's