RealTime IT News

Technical Analysis: A Tale Of Two Markets

We have two very different markets here: the Dow, which continues to hit new highs on rising volume, and the Nasdaq, which remains mired in a downtrend, with down days occurring on rising volume and rallies on falling volume. The Dow's strength has been amazing, but it is overbought in multiple timeframes and heading into some major resistance (see first two charts below). 10,130-10,180 and 10,200-10,300 are tough resistance. Support is 10,050-10,070 and 10,020. On the Nasdaq (third chart), resistance is 1932-1935 and 1940-1942, and support is 1915-1920, 1900 and 1878-1887. The S&P (fourth chart) closed right at 1075 resistance. 1083-1093 is next resistance, and support is 1068-1070, 1064, and 1058-1060. Finally, Friday is quadruple expiry, so anything can happen this week. Fasten your seatbelts. One big negative today was a big drop in new highs on both exchanges - something to keep an eye on.