Technical Analysis: At Last, A Little Fear Shows Up
Page 1 of 1
Some good news today: we finally got some put-buying, which means investors are finally showing a little fear. That's a hopeful sign for next week. A negative, though, is the bearish "three black crows" that formed on the indexes the last three days, most notably in the Nasdaq (first chart below). A bounce often follows that pattern before more downside. Resistance is 1800, 1812-1821 and 1840, and support is 1780, 1760 and 1740. On the S&P (second chart), resistance is 1000-1001, 1010 and 1015. and support is 990 and 980. The Dow (third chart) has resistance at 9370 and 9500, and support is 9200-9250 and 9000. The banks (fourth chart) need to bounce here. An old saw is that traders should buy Rosh Hashanah and sell Yom Kippur; the market is oversold enough to make that a possibility this year.