Rebound Ahead?

The Nasdaq's price action Wednesday suggests an up move Thursday

By Paul Cherney

In Wednesday's trading, the Nasdaq gapped lower, moved lower and then recovered to finish near the opening. I like the pattern (in Japanese candlesticks it is called a hammer and it is one of the few candlestick patterns I look for), it suggests a rebound in prices in Thursday's market.

The Nasdaq has immediate support in the 2604-2554 area with a focus of support 2597-2571.

Immediate Nasdaq resistance is 2652-2706. Resistance becomes thick in the 2686-2706 area.

The S&P 500 has immediate support 1339-1333 then 1329-1301. area. The index has broad and substantial resistance 1351-1389, there is a focus of resistance in the 1353-1368 area.

Cherney is market analyst for Standard & Poor's

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