More Upside Likely
By Paul Cherney
Intermediate term indicators (intermediate term for my intraday calls, namely 60 minute bars) for both the Nasdaq and the S&P 500 improved to levels that tilt the odds in favor of another day of gains on Thursday. The recovery in these indicators was substantial and I think there might have been enough momentum built up to carry prices higher again on Thursday, but unless I see other improvements in the intraday indicators tomorrow, I can really only expect the momentum established on Wednesday afternoon to see some follow-through for higher prices again on Thursday.
I simply don't have a consensus of indicators to suggest that the reversal intraday and the momentum gains in the late afternoon was anything more than a short-covering lift attended by some peripheral bargain hunting.
The Nasdaq finished Wednesday's session inside immediate resistance 1763-1791. The next layers of resistance are 1818-1827, 1841-1878. Immediate Nasdaq support is 1760-1677 with a focus 1740-1701. Wednesday's intraday low was 1729.20.
The S&P 500 index has well defined intermediate term support in the 1111-1052 area. There is a focus of support inside this region at 1097-1080, below 1080, the next layer of support is 1075-1052.
The S&P 500 index has immediate resistance 1101-1109 the next resistance is stacked, 1112-1129.40. and 1126-1139.50 which makes the 1126-1129.40 area a focus of resistance.
Cherney is market analyst for Standard & Poor's