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Technical Analysis: Nasdaq Hangs On

The Nasdaq (first chart below) could form a bullish ascending triangle if it goes no lower tomorrow. Resistance is 1653 and 1687, and any move lower would target 1620-1625 and then 1600. The S&P and Dow (second and third charts) are a little bit shakier, having pierced the same lower trendline that the Nasdaq held. To the upside, resistance is 1004.6 and 1015 on the S&P, and 9232 and 9352 on the Dow. Support is 980-982, 972 and 958-963 on the S&P, and 9053, 9000 and 8931 on the Dow. Another low equity put-call ratio reading today (.46) makes four straight complacent readings. On the positive side, new lows have not begun to expand, but new highs continue to fall, a negative.

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