For Wednesday, though, the markets have anticipated good earnings and great guidance from Intel (INTC
). If delivered, a surge higher in prices might be used by shorter-term traders to book short-term, long side profits. That would not change intermediate term expectations for S&P 500 1,068 or higher and Nasdaq 1,988 or higher.
resistance for the Nasdaq is right here, well-defined at 1937-1958.96. Once resistance is exceeded, it must be considered support until it breaks.
Immediate resistance for the S&P 500 remains the same small shelf it has been for days: 1,047-1,050.11. The next resistance above 1,050.11 is 1,068-1,106, with a focus at 1,068-1,090.
support is 1,934-1,921.96. If the Nasdaq undercuts 1,921.96 for more than 3 or 4 minutes without attracting buyers to lift prices, a test of the 1,917-1,905 area would probably unfold. The next stairstep of support for the Nasdaq (under 1,905) is 1,903-1877, with a focus at 1,892-1,888.
The S&P 500 has immediate support at 1,040.64-1,026.19.
Here is a look at overhead resistance levels based on longer-term historical intraday charts:
The S&P 500 resistance above 1,050.11 is well-defined at 1,068-1,106, with thick, brick-wall style resistance at 1,068-1,090.
The Nasdaq has a huge wall of resistance at 1,937-2,098.74, which was established by price action in December, 2001, and January, 2002. Inside this broad area of resistance there are three thick layers of resistance: 1,937-1,958.96, 1,979-2,011.25, and 2,042-2,073. Cherney is chief market analyst for Standard & Poor's