Nasdaq Has Room to Run
By Paul Cherney
I have mentioned Nasdaq price and volume patterns for four days now. The natural extension of the Nasdaq price and volume patterns I have identified are suggesting that the index should ultimately have a high close between 1762 and 1781 sometime up to and including the close of trading on Tuesday, May 21. (History never repeats itself exactly.)
Interestingly, in Wednesday's market, the intraday high for the Nasdaq was only 2.67 points away from the lower edge of the price projections (for a close) for the index of 1762-1781.
Immediate resistance for the Nasdaq is 1736-1749, then a small shelf at 1752-1759. Stepping further back form the charts, there is a band of resistance at 1736-1769. Due to the numerous stairsteps in the decline from the March top, major resistance is 1777-1832.
Immediate support for the Nasdaq is 1711-1691, with a focus of 1707-1700. Next support is 1690-1678.
Immediate resistances for the S&P 500 are 1102-1114.73 with a focus of 1105-1109, and 1117-1133.31 with a focus of 1122-1127.
Immediate S&P 500 support is 1092-1085.
Cherney is chief market analyst for Standard & Poor's