Technical Analysis: Market Getting Oversold
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The Dow, S&P and Nasdaq (first three charts below) are getting oversold on short-term stochastics, and the equity put-call ratio is showing some decent fear, so the market could bounce soon. The news tomorrow will likely be mostly negative, with Intel warning tonight and nonfarm payrolls and the UN meeting tomorrow, but that's probably no secret, so a sell-off could potentially get bought. However, the market will likely to continue to be volatile until the Iraq situation is resolved. There is likely some buying going on from those who expect a rally on that resolution, but given how widespread that belief is, the rally may be less than expected. Support on the Dow is 7629, 7500 and 7200, and resistance is 7820 and 7900. On the S&P, support is 818, 806, 800 and 768-775, and resistance is 830 and 833-837. For the Nasdaq, support is 1300, 1292, 1275-1280 and 1260, and resistance is 1308, 1320 and 1330.
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