Markets & Finance

Moving Sideways


By Paul Cherney There is no longer a positive bias in place, but there is nothing apparent in the technical view of the market to raise real concerns about a protracted decline. Friday's price action suggests sideways action.

The risk for further listless trading and lower prices on Monday is real, but the downside risk appears limited. We are coming into the week of the Triple Witch when quarterly futures, monthly index option and monthly equity options expire. I'll tentatively be expecting some weakness on Monday then Tuesday and Wednesday could see some price movement (often times trading off of each other, if Tuesday is lower, Wednesday could be higher and vice versa).

The NASDAQ has immediate resistance in the 2233-2253, resistance becomes thick in the 2263-2282 area. The next layer of resistance for the NASDAQ (above 2282) is 2339-2593 with the first focus at 2339-2406.

The NASDAQ has a band of support 2221 through 2194. If 2194 were to be broken, the next layer of support is 2167-2101, within this layer is a focus of support 2167-2150. Any print below 2194 opens downside risk for prints in the 2167-2150 area. I do not expect the 2100 level to be tested.

The S&P 500 has immediate resistance in the 1270-1287 area. Immediate support is Then 1265-1245 with a focus at1262-1256. Cherney is Market Analyst for Standard & Poor's


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