RealTime IT News

Technical Analysis: Narrow Range

The market has taken so long to correct that the S&P and Dow actually reached short-term oversold levels at today's lows. That's a narrow range. We had surprisingly complacent options activity despite today's down day. A close near today's lows tomorrow coupled with some decent fear would put the market in great shape heading into some major earnings reports tomorrow night. The Dow (first two charts below) broke its November uptrend today. 10,475-10,500 should now be tough resistance, and 10,350 and 10,300 are first supports. The S&P (charts three and four) was repelled at its broken uptrend line at today's high. Support is 1115, 1112, 1110 and 1107, and resistance is 1132. The Nasdaq (charts five and six) hasn't even touched its uptrend line yet - but another test of the 2077-2080 support level would do that. Resistance is 2115.