Technical Analysis: Reversal Back Up
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Not much to argue with today. Strong internals, a respectable equity put-call ratio, and a reversal back up on rising volume. A few problems are the big plunge in the VIX (first chart below, the options volatility index), a lack of new highs, and the fact that the market is quickly moving toward overbought levels again. Resistance on the Nasdaq (second chart) is 1992-2000, and support is 1967, 1950, 1940 and 1923. The S&P (third chart) has resistance at 1062 and 1068-1070, and support is 1050-1054, 1043 and 1040. The Dow (third chart) has resistance at 9900-9950 and 10,008, and support is 9700. Nasdaq 2000 and Dow 10,000 sure seem like magnets here, but watch what happens to sentiment if we get there.