Markets & Finance

Speed Bump Ahead?


By Paul Cherney The markets saw big gains Friday and Monday. There are short-term traders who are going to want to make the cash register ring (take short-term profits). I feel confident that there is further to go to the upside over the next four to 14 trading days, but short-term profit-taking on Tuesday is very possible. Jagged trading could result.

I think that as short-term traders book profits, the longer-term investors are going to step to the plate, so downside risk appears limited. (The could just go higher, but the move since Friday morning is ripe for short-term profit-taking.)

The Nasdaq has immediate support at 1852-1832, then 1803-1770 (1803-1770 is not expected to be tested).

The Nasdaq finished the session in a test of the 1842-1878 level of resistance. Above Nasdaq 1878, the next layer of organized resistance is 1901-1960, with a focus at 1915-1942.

The S&P 500 has a layer of support at 1147-1143, then more substantial support at 1127-1121. The S&P 500 finished Monday's session in a test of the 1150-1162 area of resistance; this is within a broader band of resistance which runs 1150-1174. The next resistance above that is 1190-1206.

With the kinds of readings I am seeing now, I think over the next four to 14 trade days, the Nasdaq should get to (minimum) 1915-1942 and the S&P 500 should get to 1190-1206. 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