I think Monday's action confirms that the markets have support directly under current prices and that downside is limited, but I do not think that means we are at the beginning of a sustained rocket-shot higher.
Until the markets demonstrate the ability to overcome resistance levels, I have to assume sideways action. I think that investors still have a reluctance to commit to the long side ahead of the first earnings reports. But I would change my opinion if the Nasdaq closed above the 1805 level, or if the S&P 500 closed above 1136).
Immediate Nasdaq support is 1765-1742. The S&P 500 has a focus of support 1119-1113.
Immediate intraday resistance for the Nasdaq is 1786-1803 then 1808-1822.
The S&P 500 has immediate resistance at 1126-1136 then 1142-1157.
The S&P 500 has immediate support at 1124-1106, with a focus at 1119-1113. If tested, this area should hold on a closing basis and still has the tential to produce a rebound in prices. Cherney is market analyst for Standard & Poor's