Technical Analysis: The Dow Approaches Support
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The Dow (first chart below) is approaching important support at 8925. Note also that RSI is at 50 on the Dow; that level has been good for a bounce since the March low, so it's a doubly important test for the Dow here. GE's earnings and producer prices tomorrow morning could turn out to be critical reports. Resistance on the Dow is 9108-9150, 9261 and 9352. The S&P (second chart) bounced at its lower channel line today. Below 985, 966 looks like the next support. Resistance is 992, 1002-1004, 1010 and 1015. The Nasdaq (third chart) put in a nasty-looking "evening star" reversal today, a white candlestick followed by a doji and then a red candlestick, and on a big gap down no less. Support is 1685-1695 and resistance is 1735-1747. The equity put-call ratio could stand to show a little more fear here to bolster the bull case. In short, no technical damage today, but the bulls need to get it together soon.
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