Technical Analysis: Rally Stumbles
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The market is having as much trouble closing in overbought territory this week as it did closing in oversold territory last week. The Nasdaq (first chart below) stumbled 10 points shy of its mid-month peak of 1967 - and put in a very similar candlestick in the process. A double-top or lower high? 1915-1920 is support. The S&P (second chart) also ran into selling just shy of its high at 1954. 1035-1040 is critical support there. The Dow (third chart) also failed shy of its high at 9850. Resistance is 9850-9900, and support is 9700. The advance-decline line was unimpressive today; new highs are the only internals that still look strong here. Upside volume never joined the rally.