Technical Analysis: Buyers Go On Strike
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Bulls were set up for a solid bottom on Monday when the NYSE put in a 90% downside volume day, heavy selling that can mark sellers' exhaustion. But buyers have to step in to make that bottom happen, with either a 90% upside day or back-to-back 80% upside days, ideally in the next 2-3 trading days. So far, buyers have failed to make that happen, which leaves open the possibility of more downside. The Nasdaq (first chart below) has major support at 1887-1890, and below that, 1880, 1865 and 1842 are also big. Resistance is 1922, 1928-1930, 1940, and 1950. The Dow (second chart) has major support at 10,000, 9900 and 9800-9850. Resistance is 10,108-10,131, 10,200, 10,250 and 10,330. The S&P (third chart) has support at 1082, and strong support from 1055-1075. Resistance is 1100-1105, 1110-1113, and 1122-1126.