Technical Analysis: 90% Downside Day
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Today was a 90% downside day on the NYSE, a sign that investors may be starting to throw in the towel. Remember, the average number of 90% downside days at a major bottom is five, according to Paul Desmond of Lowry's Reports, and the bottom must be confirmed by a 90% upside day. However, a good bounce often follows the first 90% downside day. The Dow (first chart below) has resistance at 7650-7680 and 7750, and support at 7500 and 7200. The S&P (second chart) has resistance at 822 and 830, and support at 806, 800 and 768-775. The Nasdaq (third chart) has support at 1260-1263, and resistance at 1292 and 1300. Finally, the TNX (fourth chart), the 10-year treasury yield, looks like it could see 3-3.2, based on a head and shoulders top similar to that formed by the Dow and S&P.
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