Technical Analysis: Internals Remain Strong
Page 1 of 1
The one positive for the market remains relatively strong internals, an indication that selling remains restrained and that the market may only be correcting here. That said, there are a number of signs of weakness that suggest the potential for further downside. The Nasdaq (first chart below) closed below a nice uptrend line, making 1360 the next strong support (1320 is below that), and 1390 is resistance. The Dow (second chart) also took out an uptrend line. 8550 and 8600 are resistance, and 8330 is critical support. The S&P (third chart) has support at 895, 875 is critical, and 905 and 915-917 are resistance. The SOX (fourth chart), the semiconductor index, and the Transports (fifth chart) both look like they may have put in reversals to the downside.
Don't miss the Company of the Week - every week - at http://www.wsrn.com/COW/.
Special report: For a free introduction to technical analysis and chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.