Technical Analysis: Techs On The Brink
Page 1 of 1
Another down day tomorrow could create the bearish "three black crows" pattern on the Nasdaq and SOX (first two charts below), but it's also an options expiration day, so anything could happen. At .70, the equity-only put-call ratio is close to the supportive .80 level, but the VIX, the options volatility index (third chart), remains at relatively low levels, a potential negative longer-term. Support on the Nasdaq is 1400, and resistance is 1425 and 1440-1449. The Dow (fourth chart) has important support at 8580-8600, and resistance is 8750-8800. The S&P (fifth chart) has support at 908 and 900, and resistance at 925. In short, the market is behaving exactly as it should if those rising wedge breakdowns yesterday were for real: moving down rapidly.
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_5/00051,00.html.