Technical Analysis: Still Range-bound
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The Dow and S&P (first two charts below) spent another day in their narrowing trading ranges or symmetrical triangles. A break of 7750 on the Dow and 821-823 on the S&P could signal the start of a new down leg, although 7700 on the Dow could also provide support. To the upside, resistance is 7925 and 8000 on the Dow, and 840, 844 and 849 on the S&P. The Nasdaq (third chart) has support at 1300, 1292 and 1275-1280, and 1260 is critical. Resistance is 1320, 1332-1335, and 1352. The SOX (fourth chart), the semiconductor index, turned down from its retest of the neckline of a head and shoulders top, a potential negative there. On the plus side, volume and NYSE downside volume were relatively muted today, so another rise to the top of the range remains a possibility.
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