More Positive Signs for Stocks
By Paul Cherney
I have numerous indicators at levels that increase the odds to favor that any short-term weakness will not be able to attract signficant followthrough selling to propel prices signficantly lower. When I see configurations like this, I expect that prices will ultimately rebound from any short-term weakness and close at higher levels than we have seen already. (But there could be some consolidation at the beginning of next week.)
The Nasdaq is testing a broad band of resistance at 1,960-2,055. The next resistance for the Nasdaq is 2,049-2,094; this overlaps the 1,960-2,055 resistance and that makes the 2,049-2,055 area another focus of resistance.
The S&P 500 has resistance at 1,151-1,176.97. Next resistance is thick at 1,185-1,226.
Immediate supports for the S&P 500 are 1,163-1,147 and 1,150-1,127.
The Nasdaq has immediate support at 2,025-2,016 and 2,008-1,992. A close below S&P 500 1,127 and/or Nasdaq 1,992 would be contrary to the price patterns I associate with the current technical condition of the market (In other words: I think I would be wrong about even higher prices (in the near-term) if there is an S&P 500 close under 1,127 and/or a NASDAQ close below 1,992.)
Cherney is chief market analyst for Standard & Poor's