Trend Remains Positive
By Paul Cherney
The price trend remains positive and until it demonstrates the ability to break below supports, the line of least resistance is higher.
The inability of the VIX (market volatility index) to rise and exceed its 10-day exponential moving average, which was 23.16 near Monday's close, remains a price trend positive.
The trend is still for higher prices, but no market gains every single hour of every single day. The current price levels are natural spots to see at least some sort of short-term profit-taking. If there is some profit-taking, it might only last intraday, tomorrow, but these markets are ripe.
The Nasdaq has immediate resistance 1543-1595 with a focus of resistance 1547-1568.
The S&P 500 has immediate resistance (established in August of '02 and the beginning of July of '02) at 944-965 with a focus of resistance 951-957.
Immediate support for the S&P 500 is now 939-929 with a focus 934-930.
Immediate support for the Nasdaq is 1532-1510 with a focus 1525-1515.
Cherney is chief market analyst for Standard & Poor's