Technical Analysis: So Much For That Correction
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The indexes briefly hit oversold levels today; is that it for the correction? It could be, but this should not to be mistaken for the oversold readings that occurred at the end of September, when fear was at much higher levels. The VIX (first chart below), the options volatility index, is at a level not seen since mid-1999, and the CBOE equity put-call ratio has shown no fear at all the last two days. So the trend may be up for now, but it might not take much to reverse it. On the Nasdaq (second chart below), resistance is 1935-1940, 1967-1970 and 1980, and support is 1915-1920 and 1890-1905. On the S&P (third chart), resistance is 1050-1054 and 1070, and support is 1035-1040. The Dow (fourth chart) has resistance at 9850 and support at 9700.