Right now, the volume remains questionable (not enough total trading volume to suggest that the sidelines are emptying with aggressive buyers charging onto the trading floor), but I don't know how much faith I can put in that observation because the summertime volume is traditionally low. Right now, without any clear trend in place, this is a wait and see mode.
I still think the downside is limited because I think that longer-term investors who haven't sold, probably will just hold on. (If you haven't sold by now, what's the point?) These markets are still in the hands of short-term traders until I see real volume coming in.
On balance, Nasdaq end of day indicators and systems remain in neutral. I think the downside is probably limited. One intraday price monitoring system is predicting that if the S&P 500 prints below 1150.60, then odds increase for additional selling. If this happens it would probably spell down for the Nasdaq, too, but the S&P 500 has to start printing below 1150.60 to increase the odds for this bearish call.
After reviewing Nasdaq charts from the first couple of days off the April 4th bottom I will redefine immediate Nasdaq support as 1838-1812. If 1812 is broken then there is a relatively open space on the charts and the next support does not appear until 1785-1721.
The Nasdaq has immediate resistance 1862-1923 with a focus 1862-1881 then 1897-1916.
The S&P 500 has immediate support in the 1153-1119 area, within this support band is a focus of support 1143-1128. Immediate resistance is now 1165-1170. Considerable resistance is 1174-1186. Cherney is Market Analyst for Standard & Poor's