Technical Analysis: The Nasdaq Breaks Out
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The Nasdaq (first chart below) broke out of its trading range today, only to get stopped at an old broken trendline that has now become resistance. That line should be at about 1790 for tomorrow. The Nasdaq now needs to hold that breakout at 1776. 1757-1763 is first support. The S&P (second chart) will need support from the financials (third chart) if it is going to clear 1015 resistance. The banks could form a head and shoulders top if they don't turn up soon. 990 should be strong support for the S&P. The Dow (fourth chart) keeps chugging along, holding its old March uptrend line, which should be at about 9400 tomorrow. 9352-9361 is also important support, and 9470 is no small resistance level - the 50% retrace from the index's all-time high to its October 2002 low.