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Technical Analysis: Nasdaq Holds Support

The Nasdaq (see first chart below) held 1480 support beautifully today, giving the index a strong lower trendline with three touches. For tomorrow, that trendline appears to be at 1486-1487. Resistance is 1500, 1521 and 1530-1534. With another high equity put-call ratio reading today, the market could well bounce from here to retest the highs. But if that lower trendline goes, then the market has likely begun a larger correction. The Dow (second chart) failed to recover 8522-8530 today; that and 8550 are resistance, and then 8650 is next. 8325-8350 is support. The S&P (third chart) barely held 919-920 support. Below that, S&P 907, 900, 895 and 892 are supports. Resistance is 935, 938-939 and 945.

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