Longer-term measures of daily momentum have already reached levels that keep the odds tilted to expect that any short-term weakness will attract buyers (but weakness or consolidation can last more than a single trading day).
I think it would be natural for prices to retrace a little and it is possible to see prints in the 1,150-1,142 area for the S&P 500 and 2,020-2,002 for the Nasdaq.
The Nasdaq is testing a broad band of
resistance at 1,960-2,055. The next resistance for the Nasdaq is 2,049-2,094, this overlaps the 1,960-2,055 resistance and that makes the 2,049-2,055 area another focus of resistance. Tuesday's intraday high was 2,049.77, right in the focus of resistance.
Immediate intraday Nasdaq
support is 2,036.99-2,025.71, with a focus at 2,033.42-2,027.69. Next intraday support is 2,020.67-2,002.
S&P 500 intraday support is 1,163-1,160.52; the next layer of organized intraday support is 1,147-1,138.50. Due to the nature of the advance, the index has multiple layers of support, but the most important ones to me look like (daily chart) 1,163-1,147 and 1,150-1,127. That makes the 1,150-1,147 area a focus of support.
Immediate Nasdaq intraday
resistance is 2,043.36-2,049.77.
S&P 500 intraday resistance is 1,168.23-1,170.87.
If S&P 500 1,170.87 is exceeded for more than four minutes I would guess that I am wrong about a short-term retracement occurring right now.
If Nasdaq 2,049.77 is exceeded for more than four minutes, I would guess that I am wrong about a short-term retracement.
The S&P 500 has daily price bar resistance at 1,151-1,176.97. Next resistance is thick at 1,185-1,226.
We are at the beginning of what has been historically, on average, the three best performing months of the year (November through January). Cherney is chief market analyst for Standard & Poor's