On Thursday, caution ahead of Friday's employment report will probably produce mostly sideways price action with a negative bias.
Longer-term end-of-day momentum measures remain positive but there were some divergences in price-momentum oscillators on Wednesday that often precede weakness.
Here are short-term important intraday
Price weakness and Nasdaq prints 1,983 or lower would not be a surprise for Thursday. The Nasdaq's first layer of well-defined (strong) immediate support is 1,983-1,963, and the support becomes especially thick at 1,974.99-1,963.83.
Immediate support for the S&P 500 is 1,133-1,124.
Critical short-term price levels are: Nasdaq, 1,960-1,954.29; S&P 500, 1,120.96-1,117.14. If the Nasdaq 1,954.29 or S&P 500 1,117.14 levels are undercut for more than four minutes inside the trading day, that would increase the chances for weaker prices, and a possible test of the Nasdaq 1,937-1,926 area (not expected). For the S&P 500, a move below 1,117.14 would probably produce a test of the 1,111-1,108 area (not expected).
There is a big band of
resistance for the Nasdaq at 1,960-2,055. Within this band there are layers of resistance: 1,985-2,006.58, 2,017-2,039, with especially think resistance at 2,030-2,039.
The S&P 500 had resistance at 1,127-1,142.05 with thick resistance at 1,132-1,142.05, but now the next resistance is 1,147-1,163.23. There is a focus of resistance at 1,147-1,150.57, and the buying exuberance at Wednesday's open forced the S&P 500 up to print an intraday high of 1,147.60 before prices starting edging lower. This reinforces the importance of this resistance. Cherney is chief market analyst for Standard & Poor's