Technical Analysis: How Overbought Can The Market Get?
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The Dow and S&P (first two charts below) are doing damage to some critical resistance levels here. Above 8300 and 975, the 200-day moving averages at 8450 and 894 come into play. The indexes are extremely overbought - stochastics on the S&P closed above 99 today - but that so far has only slowed the advance. Support is 8150 and 8076 on the Dow, and 860 and 852-855 on the S&P. The Nasdaq (third chart) remains stuck below an important gap from 1401-1424. 1390 is important support, and 1360 is below that.
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