Technical Analysis: Distribution Day
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After hitting new highs on lower volume and poor internals yesterday, the market turned down on rising volume today. If the market wants to correct, that's a good set-up for it. On the plus side, another statement from the Fed tomorrow that they intend to keep rates low for an extended period might give stocks a boost. The Dow (first two charts below) will open right on support tomorrow, a new uptrend line the index is trying to form. Support is 10,600, 10,550, 10,500 and 10,450, and resistance is 10,673, 10,705 and 10,730. The S&P (third and fourth charts) will also open on support tomorrow. Below 1144, next supports are 1140 and 1132. 1150 and 1155 are resistance, and 1160 (the 50% retrace of the all-time high) and 1173-1177 (the 2002 top) are major resistance. The Nasdaq (charts five and six) also closed on support. Below 2114, 2100, 2090 and 2080 are support, and 2128-2130, 2140, 2154 and 2163 are resistance.