Technical Analysis: Resistance Holds
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The only index to seriously challenge resistance today was the Dow (first chart below), but the index couldn't hold the breakout. Stochastics on all indexes have already reached the overbought level, and with dojis, or indecision candlesticks, on the Nasdaq and S&P (second and third charts), a pullback here would not be surprising. And the Nasdaq's 90% upside day yesterday raises the odds that there might not be too much more to this rally. Resistance on the Dow is 8000, and support is 7800, 7750, 7650, and 7470-7500. On the Nasdaq, resistance is 1355, and support is 1330, 1320, 1297-1300 and 1280. On the S&P, resistance is 843-845, and support is 830, 822, 817-818 and 795-806. The SOX (fourth chart), the semiconductor index, must hold 297-300 support.
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