Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Time for a Pause?

By Paul Cherney The markets look ripe for some sideways trading -- or profit-taking -- over the next day or two. Short-term measures are ripe for a brief spell of profit-taking; sometimes, in a one-way (up) market like the current market, expectations for some profit-taking precede only sideways, tight-range price action for a day or two before another wave of buyers moves in.

Longer-term momentum measures remain positive,

Downside appears limited because momentum measures have registered levels which usually mean residual positive momentum is in place. When this is the case, the first pullback in price, even a decline of two or three trading days, is usually viewed by the markets as a buying opportunity.

Near the close of trading on Tuesday, the 10-day exponential moving average of the VXO (market volatility index) close was 16.49. If the VXO moves back above 16.49, that would probably be coincident with weaker stock prices

Immediate intraday

support for the S&P 500 is 1,118.48-1,113.69, then 1,106-1,100; the broad support is 1,106-1,068 and 1,083-1,053, which makes a focus of support 1,083-1,068. Price support thickens with prints of 1,096 and lower. If prices were to spend more than four minutes below 1,113 without attracting buyers, then downside risk would open for prints of 1,109 and lower.


resistance for the S&P 500 is 1,116-1,133, then 1,151-1,176.

Immediate support for the Nasdaq is 2,037-2,027, then 2,022-2,010. Considerable support exists at 2,001-1,986, then 1,974-1,960.

Immediate resistance for the Nasdaq is 2,026-2,105. Resistance thickens with prints of 2,038 to 2,060, and prints above 2,058 will probably start to attract some profit-takers unless there is a headline of undeniably bullish importance.

There is virtually no competition for an investment dollar. Downside appears limited, but after the earnings reports for the fourth quarter, the upside might be limited, too, as the markets digest some of the gains of the past 15 months. Cherney is chief market analyst for Standard & Poor's

blog comments powered by Disqus