By Paul Cherney From Cherney Market Analysis
Both the S&P 500 and the Nasdaq are at formidable resistance. Right now there still is a modest positive bias in place, but significant upside is doubtful.
A price move above Nasdaq 2162.79 should be able to generate a test of the 2171-2177 area, but resistance becomes very thick 2177-2185 and only a close above 2186.83 would be considered a chart development of bullish importance. For the S&P 500, a move above 1233.34 would be a short-term positive and probably generate a test of the 1239-1242 area but only a close above 2142.62 would be a chart development of significance. Please see the newest Special Study for the historical perspective of Q4s following up Septembers.
The Nasdaq and the S&P 500 broke out of 6 day trading ranges on Thursday, September 29. A standard charting technique is to add the difference between the highs and the lows of the trading range to the break-out point, that would create potential upside targets of 1239 for the S&P 500 and 2171 for the Nasdaq.
The Nasdaq has resistance at 2149-2162.79; resistance is formidable at 2177-2186.83.
S&P 500 resistance is 1232.15-1236.49. The index has formidable resistance 1229-1242.62, the overlap represents a focus of resistance 1229-1236.49.
Nasdaq immediate intraday support is 2146.81-2137.08. Prints below 2137.08 for more than 4 minutes would open the immediate downside risk for a test of 2132.60-2124.28.
Nasdaq major support is 2106-2039.
The S&P 500 has immediate intraday support at 1226.98-1224.97; prints below 1224.97 for more than 4 minutes without attracting buyers to lift prices would open the immediate intraday downside risk for prints 1220-1218.
The S&P 500 has major support at 1206-1165 with a focus of support at 1206-1183. This is a very strong layer of support and is expected to hold if tested again.