Upside Unlikely

The S&P 500 may dip below 1,100 in Thursday's session

By Paul Cherney

The Bank of England and the European Central Bank are expected to cut rates on Thursday morning which could easily create a "sell on the news" event for U.S. markets.

Wednesday's U.S. session was a day of distribution.

Upside on Thursday is doubtful without a headline of undeniably bullish importance.

The S&P 500 has risk for sub 1,100 prints in Thursday's session. The Nasdaq has an important layer of support in the 1831-1820 area. A move below the 1820 level would open intraday downside risk for prints 1800-1785.

The S&P 500 has immediate support 1110-1100. The index has resistance 1114-1135.52. Resistance becomes thick with prints of 1123 and higher. (Wednesday's intraday high was 1126.62.)

Major resistance (brick wall, based on end of day data) for the S&P 500 is 1153-1199.

The Nasdaq has a shelf of resistance 1847-1869. Immediate support is 1820-1781 with a focus 1807-1793. The next support is 1759-1726.

Cherney is market analyst for Standard & Poor's

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