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Technical Analysis: The Indexes Hold Up

Perhaps the most interesting thing about the market in the last week is how it has absorbed disappointing earnings from two of its best-known and broadest economic barometers: GE and IBM. That speaks volumes of the resilience in the market, or at least of the willingness of traders to buy each and every dip. Still, the indexes continue to be restrained by the upper trendlines of potential broadening tops (see charts below), which merit some caution here. The Nasdaq (first chart) faces resistance at 1970, and support is 1920. The S&P (second chart) faces resistance at 1060, and support is 1040. The Dow (third chart) faces resistance at 9830-9840, and support is 9730-9750 and 9675-9686.