Markets & Finance

A Shakeout in the Making?


By Paul Cherney The underlying trend for prices remains positive, but in the short term it is highly susceptible to a short-fast shakeout. It is still possible that the Nasdaq is going to swing lower (if only intraday) for prints inside the price gap created by last Wednesday's (Dec. 5) open. The gap for the Nasdaq is 1980.30-1963.10.

The Nasdaq is inside its intermediate term brick wall of resistance, which is 1934-2106. There is an intermediate term focus of resistance 2061-2106. Intraday charts show multiple resistance layers. In Tuesday's session the index was unable to move above the first layer of resistance, 2007-2037. (Tuesday's intraday high print was 2032.63.)

The Nasdaq has well defined support at 1965-1888 with a focus 1942-1913.

The S&P 500 has brickwall resistance at 1153-1206.

The S&P 500 has immediate (intraday) resistance at 1162-1173.62. The index has support in the 1142-1132 area. If the index prints below 1132, a quick, sharp dip in price could follow with prints in the 1124-1115 area, but I think that buyers would emerge to stem the bleeding if there were prints in the 1124-1115 area. Cherney is market analyst for Standard & Poor's


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus