Nasdaq Overdue for Consolidation
By Paul Cherney
The underlying trend for higher prices remains in place, but hesitation ahead of Friday's April employment report could easily keep potential buyers on the sidelines in Thursday's session. The Nasdaq is overdue to see some sideways consolidation with a drift lower.
Right now, I would be concerned about downside if the Nasdaq were to close up on a day when the total share volume for the day shrunk to about 1.66 billion shares.
The Nasdaq has immediate resistance in the 2242-2356 area with a focus of resistance 2253-2310. Immediate Nasdaq support is 2169-2088.
The S&P 500 has immediate closing resistance in the 1253-1273 area. The next resistance is 1300-1341. Immediate support remains 1238-1223.
Cherney is Market Analyst for Standard & Poor's