In Monday's market, the Nasdaq tested the 2300-2251 level and buyers came to the market. The 2300-2251 area held prices on the day of the Fed's rate cut (before the announcement) so today's market must be considered a successful retest of that level.
An intraday oscillator which combines price and volume has moved into positive territory -- true for both the S&P 500 and the Nasdaq. The last time this occurred was near the end of trading on Jan. 2, the day before the Fed cut rates and put the markets into a rocket-shot.
Intraday readings tomorrow may offer a greater insight into the technical underpinnings of the market, but at this point I would have to say that weakness in the morning on Tuesday should be met by buyers.
The Nasdaq has intraday support in the 2351-2291 area. There is a focus of support 2350-2319 which has a good chance of containing any price weakness in the first hour of trading on Tuesday. Price supports based on daily bar charts are 2305-2251. I don't think that is possible for Tuesday unless there is a headline of undeniably bearish import.
Immediate resistance for the Nasdaq is 2398-2472 with a focus 2430-2450. Next resistance is 2489-2569. Cherney is market analyst for Standard & Poor's