Technical Analysis: Those Big Round Numbers
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Ah, those big round numbers. They act like both a magnet and a repellent. Perhaps now that Dow 10,000 and Nasdaq 2,000 have been touched, the market can consolidate for a while before another attempt. The Dow and S&P (first two charts below) are in such tight trading ranges that a 1% move either way is enough to become overbought or oversold; however, at some point, a breakout of this small range is likely. 10,008 on the Dow is a major resistance level, the .618 Fibonacci retracement of its all-time high. Support on the Dow can be found every 50 points down to 9700: 9900, 9850, 9800, 9750 and 9700. The S&P faces major resistance around the 1070 level, the .382 retrace of its all-time high, and 1083-1093 is resistance above that. Support is 1057-1058, 1054, 1050, 1047 and 1040. The Nasdaq (third chart) put in one very large bearish engulfing candlestick today, but it's also oversold and due for a bounce. Support is 1900, 1890 and 1880, and resistance is 1915-1920, 1925 and 1940.