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Technical Analysis: Four Words From The Fed

A strange market here, with the Dow (first chart below) clearly outperforming, and the Nasdaq (second chart) clearly lagging. The S&P (third chart) is stuck in such a narrow range that it might not take more than a 1% move in either direction to become overbought or oversold. The Dow, meanwhile, is already overbought as it approaches 10,008 resistance (and on low volume too), which makes us think it might be set up to sell off if it reaches that mark, as happened to the Nasdaq at the 2000 level last week. The Nasdaq faces resistance at 1960 and 1967-1972, and 1924-1926 and 1915-1920 are first support levels, with 1900 and 1880 below that. The Dow faces major resistance at 10,008, and support is 9925, 9900 and 9850. The S&P is back at 1070 resistance, with 1083-1093 above that. Support is 1058-1060 and 1054. Investors will hear from the Fed again tomorrow, and will be watching to see if the Fed pledges once again to keep rates low "for the foreseeable future."