Technical Analysis: Dow Rejected At Downtrend Line
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The Dow (first chart below) was stopped at its January downtrend line today. A move above that line at 7900 tomorrow could target major resistance just below 8000. 7750 is critical support. The S&P (second chart) has tough resistance at 842-844 and then 852. 824 is critical support. The Nasdaq (third chart) hit that tough 1332-1335 resistance zone yet again today. Above that, 1352 is next resistance. 1300, 1292, 1275-1280 and 1260 are support. The SOX (fourth chart), the semiconductor index, continues to consolidate below the neckline of a head and shoulders top. Finally, the equity put-call ratio came in at a bearish .43 today. All in all, the market looks like it is consolidating before the next leg down.
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