Technical Analysis: More Resistance Taken Out
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The indexes took out more resistance today - but once again the rally came on lower NYSE volume, suggesting that the rally is corrective. Up next is the critical 8150-8250 zone on the Dow (first chart below). If the index can clear that, we'd be impressed, but the low volume favors the rally failing in that area. Support is 8000, 7900 and 7775. The S&P (second chart) has resistance at 855-857, and then major resistance at 865-870. Support is 845, 840, and 832-835. The Nasdaq (third chart) has resistance at 1346-1349 and then 1360-1365. Support is 1335, 1320 and 1300. Max-Pain on the QQQ, the Nasdaq 100 tracking stock, remains at 25, so the options theory suggests that the index should head below that level in the next couple of days.
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