Indicators Are Positive
By Paul Cherney
A big jump in advance third-quarter GDP on Thursday (reported at 8:30 a.m. ET) has a good shot at creating a buying capitulation. Estimates on the Street are for GDP growth of 6.0% or 6.1%.
Thursday's VXO (market volatility index) might offer the best clue as to whether any price gains can last the day. As long as the VXO stays below 17.69, I would interpret this indicator as a positive. But a move above 17.69 will probably coincide with profit-taking.
End of day indicators for both the Nasdaq and the S&P 500 are positive. Neither of these indexes is showing impressive numbers, but they are positive readings.
Nasdaq resistance is now 1,930-1,966.87, with layers at 1,934-1,944 and 1,941-1,953. The next layers of resistance are 1,979-2,011.25 and 2,042-2,073.
The S&P 500 has only one layer of immediate resistance: 1,047-1,053.79, with a focus at 1,047-1,050.11. After that, resistance is 1,068-1,106 with thick, brick-wall style resistance at 1,068-1,090.
Immediate Nasdaq support is 1,923-1,907.
The S&P 500 has supports at 1,036-1,026 and 1,028-1,023.93.
Expectations for a close of 1,068 or higher for the S&P 500 , and a Nasdaq close of 1,988, both before Dec. 8, have not become extinct.
Cherney is chief market analyst for Standard & Poor's