Technical Analysis: Selling Intensifies
Page 1 of 1
We got some wholesale selling today, including a rare 90% downside volume day on the NYSE. But that can be a good sign, because that is how selling gets exhausted, leaving room for the market to move higher. We got a big spike in the VIX, the options volatility index, showing decent fear, a very high TRIN reading, or selling pressure (see first two charts below), and decent put buying. The only question is how much more investors need to sell before the market can turn back up. The Nasdaq (third chart) has major support at 1887, and below that, 1880 and 1865 are also big. Resistance is 1913-1922, 1928-1930, 1940, 1950 and 1960. The Dow (fourth chart) has major support at 10,000, 9900 and 9800. Resistance is 10,100, 10,200, 10,250 and 10,350. The S&P (fifth chart) has support at 1090 and 1082, and strong support from 1055-1075. Resistance is 1100-1105, 1110-1113, and 1122-1126.