Running Out of Gas?
By Paul Cherney
The potentially bullish impact of the headlines heralding economic stimulus packages has probably been discounted by Monday's price action. For Tuesday, morning positive momentum probably will not generate convincing follow-through higher.
Downside risk appears limited, but after opening gains, consolidation is likely.
Support: Immediate support for the S&P 500 is 911.25-898.
Immediate support for the Nasdaq is now 1411-1375, with a particularly strong layer at 1408-1392.
Resistance: The S&P 500 has resistance at 931-954.28.
The Nasdaq's next layers of resistance are 1443-1461 and 1455-75, which makes the 1455-1461 area a focus of resistance.
Cherney is chief market analyst for Standard & Poor's