Sideways Action Continues
By Paul Cherney
More sideways action on Tuesday seems likely. Monday's intraday price action was positive (because new sellers could not force prices lower all day), but the real problem for the markets is hesitancy ahead of the first quarter earnings reports. Upside looks limited, and downside looks limited.
After Thursday's close, the overnight systems produced a signal based on NYSE new 52-week lows which keeps the odds bent in favor of sideways price action. Attempts to advance can produce a few trade days of higher prices, but a retracement usually follows.
The NASDAQ index has a layer of immediate support 1844-1815, then 1808-1773, with a focus 1803-1793. Immediate intraday resistance is 1855-1874, then 1878-1899.
The S&P 500 is testing immediate resistance 1142-1157. Resistance actually runs 1142-1174.
The S&P 500 has immediate support 1132-1126. There is considerable support for the S&P 500 in the 1130-1107 area.
Cherney is market analyst for Standard & Poor's