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Technical Analysis: Market Holds Support

The Dow, Nasdaq and S&P all held support today, and with internals holding up and bearish sentiment running high, the stage could be set for a bounce soon. As of tomorrow, the first quadruple expiration will be out of the way (stock and index futures and options), and starting next week, the market enters a historically positive period for the next few weeks. That said, the indexes sure made it a nail-biter, with the Dow and S&P (first two charts) barely holding the .382 retracement levels off the October lows (8338 and 883), and the S&P barely holding an important trendline at the same level. Support below those levels are 8300 and 8250 on the Dow, and 875 and 870 on the S&P, and below those levels, 8000 and 850 are the next strong supports. Resistance is 8425, 8500 and 8550 on the Dow, and 893 and 900 on the S&P. The Nasdaq (third chart) barely held 1347 support today. Below that, 1319 is the next support level. 1380 and 1405 are resistance. On the sentiment front, the high VIX (fourth chart) and equity-only put-call ratio of .81 showed some nice fear today.

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