Technical Analysis: Dow Breaks Down
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The Dow (first chart below) broke support today, a troublesome sign for the broader market. The index needs to get back above 10,580 tomorrow to recover the breakdown (10,560 is first resistance). Support is 10,500 and 10,400. The S&P (second chart) is beginning to look as much like a bearish rising wedge as a bullish ascending triangle after Friday's failed breakout. As long as the index can hold the lower trendline around 1142-1145, another leg up is possible. Resistance is 1150, 1157 and 1160-1164. The Nasdaq (third chart) is very oversold and approaching 1991-2000 support, with 1978 a support level below that. Resistance is 2022 and 2035.