Markets--P. Cherney, S&P: "Odds Favor Further Gains"
personalwealth.com
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Edited for emphasis and ease of reading.
>>>Thursday October 19, 2000 (4:44 pm ET)
Odds Favor Further Gains
By Paul Cherney, S&P Market Analyst
NEW YORK, Oct. 19 (Standard & Poor's) - Odds favor that the equity indexes should see net gains over the next 7 to 15 trade days.
When I say net gains, I mean that the indexes should move higher, not every single day is going to be positive.
Technically we are in a short-covering rally and the momentum traders who jumped on the price advance are going to be booking profits which could slow the advance on Friday (which is also Option Expiration).
The NASDAQ has already covered a lot of ground from the low set on Wednesday, but the capitulation levels we saw in the VIX, and the total shares traded on Wednesday combined with the extreme P/C ratios suggest that downside is limited for the time being.
The NASDAQ:
...immediate resistance is 3443-3516 and prints in this area on Friday will probably prompt some short-term profit-taking,
...has a brick wall of resistance in the 3558-3751 area,
...immediate support is 3389-3353 then 3334-3314.
The 3314 level represents the intraday low in Thursday's gap higher opening, if prices start to print below this level anytime in the next few trade days, then risk opens for prints in the next level of support which is 3262-3196, but without a headline of undeniably bearish impact, it is not likely that this area of support will be tested.
The S&P 500:
...has immediate resistance 1391-1409 area,
...has a brick wall of resistance in the 1416-1444 area,
...immediate support is 1378-1366 then 1356-1341.<<< |
