Is a Tuesday Rebound in the Cards?
By Paul Cherney
This is option expiration week.
The markets are ripe for a one-day rebound. It might have already started or there might be a brief shakeout on Tuesday morning.
End-of-day indicators have not really reached levels which would suggest to me that the search for consistent buyers has been found, so even though I expect to see a one day rebound on Tuesday, I cannot rule out lower prices on Wednesday.
Support: Nasdaq support is 1,890-1,873 and at this time I expect these levels to hold if tested.
S&P 500 support is 1,046-1,043 and 1,038-1,035.28.
Resistance: Immediate resistance for the Nasdaq is 1,930-1,937.92, then 1,945.69-1,956.93.
The S&P 500 has resistance at 1,048.11-1,052.10. Additional resistance is 1,054 to 1,062.19, with a focus at 1,056.94-1,060.79.
Correction: I made a mistake in the Nov. 14 column. The actual end-of-day price bar gap from Oct. 28 should have been 1,892.43-1,890.66. That gap was mostly filled in Monday's session because the intraday low for the Nasdaq was 1,890.72.
Cherney is chief market analyst for Standard & Poor's