Constructive Day for Stocks
By Paul Cherney
There were no excessive put/call ratios in Monday's session but the price action was constructive.
Historical odds favor an advance in Tuesday's session with positive closes for both the S&P 500 and the NASDAQ. The NASDAQ has immediate (intraday) support 2480-2468 then more substantial support is 2458-2406 with a focus 2452-2435. It would not be good for prices if the NASDAQ printed below the 2435 level for anything more than three or four minutes without attracting buyers.
The NASDAQ ended Monday's session in a test of immediate resistance which is 2486-2508.27. The next resistance is 2516-2536. Considerable resistance is 2562-2611 with a focus 2572-2590.
The S&P 500 has immediate support in the 1322-1311 area. This focus is within a broader area of support which is 1329-1301. Immediate S&P 500 resistance is 1332-1339 then MAJOR, brick wall resistance is 1351-1389 with a focus in the 1353-1368 area.
Cherney is market analyst for Standard & Poor's