Nasdaq Can Head Higher

One concern: the index attracted sellers when it printed intraday highs on May 15 and May 17

By Paul Cherney

The possibility for a Nasdaq close between 1762 and 1781 sometime up to and including the close of trading on Tuesday, May 21, remains alive. This call was based on volume and price patterns for the Nasdaq. I would doubt a Nasdaq close in the 1762-1781 area by Tuesday if the index finished Monday's session under 1723.

Immediate resistance for the Nasdaq remains 1736-1749, next resistance is a small shelf 1752-1760. It is a source of some concern that the Nasdaq has managed to print intraday highs of 1759.33 (on Wednesday, May 15) and 1754.22 (on Friday, May 17) only to attract sellers to the marketplace.

The Nasdaq index has a broad band of resistance 1736-1769. Major resistance is 1777-1832.

Immediate support for the Nasdaq is 1729-1713, then 1711-1691 with a focus of 1707-1700.

The Nasdaq has a critical layer of support at 1711-1691. Nasdaq 1691.42 is the low the index printed on Tuesday, May 14, the second day of 3% plus gains this past week. The 1691.42 level represents the beginning of a gap in the intraday price chart which runs 1691.42 - 1653.10.

The S&P 500 finished Friday's session inside the 1102-1114.73 resistance; there is a focus of resistance at 1105-1109. The next layer of resistance is directly overhead at 1117-1133.31, with a focus of 1122-1127.

Immediate S&P 500 support is 1096-1085.

Cherney is chief market analyst for Standard & Poor's

Before it's here, it's on the Bloomberg Terminal.