Technical Analysis: Breakouts
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Well, we said the market would have a good excuse to rally when the Fed released its decision on interest rates this afternoon, and rally it did. The Dow, S&P and Nasdaq all took out resistance levels today, and on high volume too. If they can hold those breakouts, a retest of the highs is likely. About the only negative today is that the market is already approaching overbought levels (upside volume could have been stronger too). Support on the Nasdaq (first chart below) is now 1920, and resistance is 1940, 1950 and 1967. Ever seen so many gaps coming and going before? That chart is evidence of a confused market. The S&P (second chart) now has support at 1035-1040, and resistance is 1054. The Dow (third chart) has support at 9700, and resistance at 9850-9900.