Technical Analysis: Market Shows Resilience
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Nice resilience in the market so far, and in the smallest timeframes, we have consolidations at the top of a four-day rally, suggesting the possibility of another pop. But on the Nasdaq (first chart below), we could also have a bearish pennant or rising wedge forming, and on declining volume too. If that's the case, a break of about 2067 to the downside could be a warning sign, and 2060 further evidence of a move down. Below that, 2050-2053, 2040-2044 and 2030 are support. 2080-2088 is major resistance, with 2100 and 2120 above that. The S&P (second chart) has resistance at 1148-1150, 1155 and 1160, and support at 1139, 1136, 1132 and 1127. The Dow (third chart) may still be forming a head and shoulders top here. Resistance is 10,673 and 10,705, and 10,550-10,555, 10,500 and 10,475 are support. Much of the market's action the next two days could hinge on Fed Chairman Alan Greenspan's testimony tomorrow, and Dell's earnings on Thursday.