Technical Analysis: A Morning Star On The Nasdaq
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A hopeful sign for the Nasdaq (first chart below) in the form of a three-day "morning star" reversal pattern that completed with today's white candlestick. The downside is the significantly lower volume on today's rally, a sign more befitting a rally in a downtrend. In the bigger picture, a 60-17 margin in favor of bulls over bears in the weekly Investors Intelligence survey is a little alarming, but the survey is not a precise timing tool. At this point, we see no strong resistance on the Nasdaq until 2040-2046. Support is 2019-2020, 2005-2010, 2000, 1990 and 1978-1980. The S&P (second chart) faces resistance at 1145-1147, 1150, 1155 and 1160, and support is 1140, 1136, and 1130-1134. The Dow (third chart) has support at 10,500-10,530, and resistance is 10,637-10,650, 10,673, 10,705 and 10,750.