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Technical Analysis: Range-bound

Except for Monday's big spike, the indexes have spent most of the last four days in a very narrow trading range. The Dow and S&P (first two charts below) remain trapped below their 200-day moving averages at 8355 and 883, respectively. Above those levels, 8500-8522 and 896-905 are major resistance. To the downside, 8250 and 875 are support. The Nasdaq (third chart) remains just above the critical level of 1368-1375; a gap that opens near 1360 support would be bearish. To the upside, 1390-1395, 1401 and 1425-1430 are resistance. Sentiment remains mixed, with the equity put-call ratio at a relatively positive .68, but the lower low in the VIX (fourth chart), the options volatility index, is a negative. The VIX has downside to about 27, but that's about it. The market remains torn between too many calls overhead and too many puts below. However, the chart picture and the greater number of calls suggest an eventual resolution to the downside.

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