Support Remains in Place
By Paul Cherney
Nothing much has changed.
All the sideways travel in the markets that occurred from the last week of October until this past week represents a sturdy base of support. Those levels are 1425-1317 for the Nasdaq and 926-867 for the S&P 500. I do not expect these levels to break.
There is probably still a reluctance to commit to the long side ahead of the Dec. 8 deadline (Sunday) for Iraq to declare all unsanctioned weapons.
The closer we get to Tuesday, Dec. 10, the more the odds build for the re-establishment of a more consistently positive price trend.
Support: The S&P 500 has multiple stairsteps of support within the broad 926-867 area: 915-907, 910-904 (which makes the 910-907 area a focus of support), and 897-887.
Immediate Nasdaq support is 1426-1407, then 1395-1371.
Resistance: The S&P 500 has resistance at 932-965. Immediate intraday resistance is 932-944.
The Nasdaq has resistance at 1445-1461.45, then 1474-1506 and 1492-1568, which makes the 1492-1506 area a focus of resistance.
Cherney is chief market analyst for Standard & Poor's