Equities Should Consolidate Sideways
By Paul Cherney
Technically, there are no major flags of caution or danger for the NASDAQ or the S&P 500. The equity markets are probably going to consolidate sideways. Earnings worries should be neutralized by the realization that the Fed is in an easing mode.
The NASDAQ has a thin layer of support 2659-2651 then more substantial support in the 2644-2576.95 area. Within this area of substantial support is a focus of support: in the 2630-2614 area. The next layer of support for the NASDAQ (not expected to be tested on Wednesday) is 2604-2576.
Immediate NASDAQ resistance remains 2686-2743 and Tuesday's session has established a focus of resistance in the 2686-2706 area.
The S&P 500 is testing a focus of resistance in the 1353-1368 area. The index has broad and substantial resistance around 1351-1389. The index has support in the 1350-1342 then 1335-1325.
Cherney is market analyst for Standard & Poor's