If tested, I would expect this area to hold on a closing basis. That immediate line of Nasdaq support is 2,117-2,090.35. The index has additional support at 2,112-2,052, so the 2,112-2,090 area is a focus of buying demand. The S&P 500 has immediate support at 1,186-1,167 and overlapping support at 1,170.87-1,160.52, which makes the 1,171-1,167 area focus of buying support.
If the nonfarm payrolls number is greater than 230,000, bulls will command, but late in the session, the market could see profit-taking ahead of the weekend that pulls prices off the best levels of the day.
End-of-day momentum measures remain at levels that usually mean retracements in price are short in duration and shallow in depth. There is a tendency for some price weakness in the beginning of December which is usually a pretty good set-up for a lift into the end of the year.
Additional S&P 500 support layers are 1,177-1,160, then 1,147-1,127. The 1,147-1,127 area has a focus of support at 1,144-1,138.50.
Additional Nasdaq supports are 2,094-2,052 and 2,068-2,025, and that makes the 2,068-2,052 area thick with support. The next layer of support is 2,049.77-2,032.
resistance: There were about 7 trading days in January of this year when the Nasdaq traded sideways in the 2,119-2,153.83 area. The index exceeded the 2,153 level intraday on Thursday, Dec. 2, but the advance attracted sellers, not more buyers. Current Nasdaq resistance is a big band at 2,118-2,181.05, with a focus at 2,132-2,153.83. Next resistance is 2,205-2,328.
The S&P 500 has immediate resistance at 1,195-1,226. Cherney is chief market analyst for Standard & Poor's