Technical Analysis: Overbought And At Resistance
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The Dow and S&P (first two charts below) remain just below the critical resistance levels of 8243 and 870; above those levels, the indexes could make a run for the January-December highs. To the downside, support is 8076 and 8000 on the Dow, and 8052 on the S&P. The Nasdaq (third chart) is right below an important gap from 1401-1424. 1390 is important support, and 1360 is below that. New highs and lows improved somewhat today, a positive, but the equity put-call ratio came in at a bearish .45. Given the overbought nature of the market, it's hard to imagine those major resistance levels getting taken out without a pullback first.
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