Technical Analysis: Back To Oversold
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We have the same situation we had when the market was oversold two days ago: a nice spike in the VIX (first chart below, the options volatility index), but a complacent equity put-call ratio. While options expiration could be to blame for the low PC ratio, it's still not what we'd like to see for a lasting low. Still, with next week a shortened holiday week, some sort of rally may yet materialize. We'll give the bulls point for internals - today's retest of Tuesday's lows came on lower volume, and Nasdaq new lows were cut in half, pulling back from the danger zone above 30. The Nasdaq (second chart) stalled at the start of the 1915-1930 resistance zone today, and reversed to close back on 1880 support. 1865 and 1842 are the next support levels below that, and important ones too. The S&P (third chart) stalled at 1047-1050 resistance, and closed back on support at 1033. 1025 and 1018-1020 are next supports. The Dow (fourth chart) has resistance at 9726-9765 and 9800, and support is 9600, 9500 and 9400.