Technical Analysis: Buying Bad News
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None of the economic or earnings news lately has been positive, but traders are buying it anyway, which is a plus for the bulls. However, sentiment remains dangerous here, with the VIX (options volatility index, first chart below), at its lower weekly Bollinger Band, which has marked reversals in the index for years. The rally could continue higher, but watch out when it runs out of steam. The S&P (second chart below) has major resistance at 900, 905 and 910. Support is 875-878. The Nasdaq (third chart) has resistance at 1401, 1410-1415, and 1425-1430. Support is 1370 and 1356. The Dow (fourth chart) has major resistance from 8450-8522; above that, the index could run to 8700-8800. Support is 8275-8300.
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