Technical Analysis: The Market Has Fallen And It Can't Get Up
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Heavy selling pressure and extreme bearishness and stocks still can't bounce. So far, we have consolidations at the lows on all indexes, which suggests that we may have another leg down before the market can generate a significant bounce. The Nasdaq (first chart below) has very strong support at the 1913-1920 and 1880-1887 levels, and resistance is 1960-1964 and 1978-1991. The Dow (second chart) is also coming up on very strong support in the 9900-10,000 range. Resistance is 10,250. The S&P (third chart) has support at 1096-1100, 1090 and 1075-1082, and resistance is 1115 and 1122.