Technical Analysis: Breakdowns
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The bearish rising wedges that we mentioned yesterday broke down in force today, and on rising volume too. The one positive is that the market is very oversold on a short-term basis, but for a rally to go anywhere, the indexes need to recover a lot of broken support. The S&P 500 (first chart below) has major resistance at 1015-1025. Next support is 1000-1001, and then 990, 975-980 and 962 come into play. The Nasdaq (second chart) has major support at 1812-1820, and resistance is 1860. The Dow (third chart) has critical support at 9352-9361, and resistance is 9500. Finally, we would have preferred to see more put-buying today to bolster the bullish case.