dcsimg
RealTime IT News

Technical Analysis: The Dow Approaches Support

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.

Don't miss the Company of the Week - every week - at http://www.wsrn.com/COW/.

Special report: For a free introduction to technical analysis and chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_5/00051,00.html.