RealTime IT News

Technical Analysis: Oversold

The market is pretty oversold on a short-term basis. Friday's jobs report could have much to say about whether the market bounces. Expectations are for 165,000 new jobs, so there's some room for disappointment. Options traders didn't show much fear today, a negative for the market, and the market has established a bearish pattern of bouncing on lower volume and selling off on rising volume. The Nasdaq (first chart below) has support at 2000, 1975 and 1950, and resistance is 2030 and a strong downtrend line at 2040. The S&P (second chart) has support at 1125 and 1121, and resistance is 1132 and 1136-1138. The Dow (third chart) has support at 10,447, 10,417-10,434 and 10,350-10368, and resistance is 10,540 and 10,570-10,600.