"Cherney on the Markets"--S&P: " Heading Higher"...
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Edited for emphasis + ease of reading:
>>>Wednesday July 12, 2000 (4:40 pm ET)
Heading Higher
By Paul Cherney, S&P Market Analyst
NEW YORK, Jul. 12 (Standard & Poor's) - The NASDAQ broke above and closed above a bullish breakout point -- 4073.73. The momentum in place should generate some follow-through which could last another 1 to 4 trade days.
Oftentimes, bullish breaks above consolidations have an initial burst higher then retrace and test the level of the breakout. (There are always two time horizons at work in the marketplace: traders and long-term investors.)
Initial bursts higher often run out of steam as shorter-term traders book profits; this is what can cause a retest of the breakout point.
The NASDAQ's immediate support is 4073-3991 with a focus at 4064-4021. Immediate NASDAQ resistance is 4110-4150. The really thick resistance looks like prints above 4177, which should be tested sometime in the 1 to 4 trade days.
The Intermediate term resistance (next 2 to 4 weeks) is 4177-4606, but there are layers inside this resistance: 4177-4324 looks formidable and prices will probably be turned lower on their first prints in the this area. Another layer of resistance runs from 4324 through to 4475.
When there are layers of resistance, the markets often push higher for a test, then shorter-term position traders unload longs, causing a retracement before other players think that prices represent a bargain and start buying, which fuels another attempt at a rally.
The S&P 500 has immediate support at 1479-1470. The index is testing resistance at 1488-1516 and this area offers considerable resistance. The S&P 500's next layer of resistance is 1524-1552.87.<<< |
