Positive Bias in Place
By Paul Cherney
There is a positive bias in place for the equity markets. Which means I expect to see net gains for the beginning of July, but I do not think there can be an uninterrupted trend higher.
Next week, the July 4th holiday falls on a Wednesday, and the week has the potential to see total trading volume ebb. Friday, June 29, the last day of the quarter, might be the biggest volume the markets see until the first full week of trading following the July 4th holiday.
The Nasdaq finished Thursday's session in a test of immediate resistance which is 2120-2187. The next resistance is 2210-2330. There is a huge layer of support in the 2084-2017 area.
The S&P 500 is testing immediate resistance in the 1219-1228 area. The next resistance is 1250-1316.
The "500" has well-established support in the 1212-1184 area.
Cherney is Market Analyst for Standard & Poor's