Technical Analysis: Rally Stalls
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Nice recovery on today's sell-off, much of which could probably be attributed to unfounded rumors about the health of Fed chairman Alan Greenspan. There was a nice spike in the equity put-call ratio today, but 194,000 of those puts were June 34 QQQs, so today's high reading may not mean much. The market is likely biding its time before Friday's big jobs report, and the consensus is that it will be a good one, so it had better be. The Nasdaq (first chart below) has one more hurdle at its downtrend line just above 2010. Above that, 2020 and 2030 are next resistance levels. Support is 1985, 1980 and 1970. The S&P (second chart) faces resistance at 1134, 1140 and 1145, and support is 1120, 1110-1115 and 1102-1105. The Dow (third chart) has resistance at 10,400-10,430, 10,470 and 10,530, and support is 10,300-10,330, 10,250-10,270, 10,180, and 10,100.