Technical Analysis: Indexes Break Out
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Not much to complain about tonight. The equity put-call ratio continues to show skepticism, closing at .62 today, and even the new high list improved today. However, the market is pretty stretched at this point and could use a consolidation or correction. NYSE internals remain the one weak spot for the market, but even they improved today. Critical support is now easy to figure out: yesterday's resistance levels of 1426.76 on the Nasdaq, 925.7 on the S&P, and 8800 on the Dow (we'll give the Dow a little more room to 8750). The S&P (first two charts) and Nasdaq (third and fourth charts) closed right at downtrend resistance today. Above that, next resistance levels are 950-965 on the S&P, 1500-1515 on the Nasdaq, and the Dow (fifth chart) faces resistance at 9000-9077. Next Monday-Tuesday marks a potential cycle turn window; the last two, November 7 and October 9, turned out to be worth watching.
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