Still Upside for the Nasdaq
By Paul Cherney
The possibility for a Nasdaq close between 1762 and 1781 sometime up to and including the close of trade on Tuesday, May 21, remains valid. At this time I do not have end-of-day indicators at levels I consider predictive. The potential for a Nasdaq close between 1762 and 1781 is based on similar price and volume mpatterns in the past two years.
I would tend to doubt that the Nasdaq can achieve a close above 1762 as of the close on May 21 if the index deteriorates further and closes beneath 1691 either Friday or Monday.
Immediate resistance for the Nasdaq is 1736-1749 then a small shelf 1752-1759. There is a broad band of resistance 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 1720-1713 then 1711-1691 with a focus 1707-1700.
Immediate resistances for the S&P 500 are 1102-1114.73 with a focus 1105-1109, and 1117-1133.31 with a focus 1122-1127.
Immediate S&P 500 support is 1092-1085.
Cherney is chief market analyst for Standard & Poor's