So far, there is no evidence to doubt last Friday's (Sept. 10) intraday signal and expectations for the Nasdaq to move a little higher and establish a close at least in the next layer of resistance which is 1,912-1,933.03. I am still expecting higher closes this week.
The smallest closing gain seen by the Nasdaq during the first 6 trading days after the signals I referenced in last Friday's column was +1.6%; for the current market that would equate to a Nasdaq close of 1,924. That should happen by Friday of this week or Monday of next week.
I would tend to doubt that this could happen if the CBOE volatility index, or VXO, started a move above the 14.04 level (chart observation).
The chart pattern I was expecting to see today did not really unfold as small losses on Tuesday would have been a set-up for opening selling on Wednesday and then an intraday reversal.
Overall, technical measures based on end-of-day data retain a positive bias and until something else occurs (technically) I have to assume higher closes are likely.
support is 1,910-1,901.77, then 1,896-1,876.
S&P 500 support is 1,123-1,117, which overlaps 1,118-1,113, making the 1,118-1,117 area a focus of support. Next support is 1,110-1,094.
The S&P 500 is testing immediate
resistance at 1,123-1,130.33. This year's June price action established more formidable resistance in the 1,129-1,146.34 area, with a focus of resistance 1,132-1,140.
Immediate resistance for the Nasdaq is 1,912-1,933.03; inside this area, resistance thickens with prints of 1,922 and higher. The next area of well-defined resistance is prints of 1,960 and higher. Cherney is chief market analyst for Standard & Poor's