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Technical Analysis: S&P, Dow Falter At Resistance

The Dow and S&P (first two charts below) were rejected at some major resistance levels. The Dow had a failed push above 8522-8525 resistance, which could indicate exhaustion for this move. The S&P, meanwhile, was rejected at the upper trendline of a potential bearish rising wedge. Resistance remains 8522-8525 on a closing basis, and 926-927 on the S&P. Support is 8350-8390 on the Dow, and 906 and 896 on the S&P. The Nasdaq (third chart) put in a doji star at 1485 resistance. Support is 1460, 1432 and 1412. The banks and Transports (fourth and fifth charts) look ripe for a fall. The equity put-call ratio is at a respectable .80 despite opening at a very low .35, but frankly, given all the other sentiment indicators that suggest too much complacency here, a down day tomorrow would look like a top to us.

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