Equities Should Consolidate Sideways

Falling interest rates likely to ease worries over corporate earnings

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

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