Technical Analysis: Nasdaq Hits Its Downtrend Line
Page 1 of 1
The Nasdaq (first chart below) ran into its downtrend line at 2059 today and turned back. That line should be at 2057-2058 tomorrow. If the index can clear it, 2079 and 2088-2095 are next. Support levels are 2030-2032, 2020, 2008 and 2000. The S&P (second chart) managed to clear its downtrend line today, only to get turned back when the Nasdaq failed to break its downtrend. 1142, 1145, 1150, 1157, and 1160-1163 are resistance, and support is 1132 and 1126. The Dow (third chart) was another index with a failed breakout today. Resistance at 10,500-10,513 and 10,570, and support is 10400-10,422 and 10,332. Finally, one last comment on the poor internals we've noted lately: it is our observation that the market will often retrace to the level where the rally started to weaken internally - that would coincide with about 2000 or so on the Nasdaq. The healthiest thing for the market to do, in our opinion, would be to retest the recent lows and then regroup with stronger internals. But entering the typically strong end-of-the-month period, it's possible the market will have other ideas.