Technical Analysis: A Three-Hour Tour
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The Nasdaq (first chart below) put in a bullish island reversal today, gapping over a previous gap in the opposite direction to create an "island" at the recent lows. The minimum expected target for such a reversal would be the recent high at 1425. 1401 is first resistance, and 1368-1375 is support. The Dow and S&P (second and third charts) are once again back at the critical resistance areas of 8250-8300 and 875-880. 8380 and 886 are next resistance levels above that, and then 8522-8550 and 895-901 above that. Support is 8050-8100 on the Dow, and 858-862 on the S&P. The equity put-call ratio came in at a low .53 today, but still above the .45 danger level. More of a concern is that the QQQ, the Nasdaq 100 tracking stock, is approaching an area (27 and above) were calls greatly outnumber puts, so supply could overwhelm demand at that level.
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