For the S&P 500, a breakout of the trade range should see prices move to the next levels of respective support or resistance. The S&P 500 has been bounded by 1111 on the downside, a move below this level finds the next support at 1103-1095 (Monday's headline induced selling near the open of Monday's trade day saw the S&P 500 print an intraday low of 1098.32, within the chart support). This is a short-term positive. The upside for the S&P has been limited to a print of 1135.75, a move above this level finds the next resistance 1153-1200 (brick wall).
The NASDAQ has a shelf of resistance 1847-1888.39 which appears well defined. The 1807-1793 area is a focus of support inside the broader band of support which is 1820-1781. In Monday's session, the NASDAQ printed a swing low of 1782.48, just above the lower edge of the broader band of support. This is also a short-term positive.
Based on weekly charts, the positive momentum in prices has not faltered yet. On a daily basis, the markets remain overbought but for the time being it appears they are trying to work off the overbought conditions by trading sideways.
Much of these comments might appear unchanged from Friday's end of day comments. That's because nothing much has changed since then except for one thing: The headline induced selling at the open of Monday's session saw no followthrough, that is a short-term positive. Cherney is market analyst for Standard & Poor's