Technical Analysis: Dojis, Dojis Everywhere
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Dojis - unchanged candlesticks - on the major indexes could signal a top if followed through to the downside tomorrow. Another down day for the VIX (options volatility index, first chart below), which remains in danger territory. The banks and the Nasdaq (second and third charts) could be forming bearish rising wedges here. The Nasdaq has resistance at 1433 and 1465, and support at 1401, 1385 and 1365. The S&P (fourth chart) could also be forming a rising wedge, but would need to get all the way to 915 to test the upper line. Resistance is 900-905, and support is 887 and 880-881. The Dow (fifth chart) has resistance at 8460-8522, and support at 8300. Internals continue to hold up well - including a nice expansion in new highs today - the one positive for the market to build on.
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