Technical Analysis: It's A Start
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Not much of a start to the rally, with the indexes once again failing to put together a broad-based advance. We also had another high equity put-call ratio reading today, a plus for an up day, but much of that put activity appeared to be large QQQ traders, so the reading is less meaningful than if it were small investors showing skepticism. With the lukewarm response to Cisco's earnings tonight, the market may be on hold until Thursday's and Friday's inflation reports (and Dell's earnings Thursday night). On the plus side, the Nasdaq (first chart below) put in a bullish island reversal on this morning's gap up, setting up a possible retest of the recent high at 1969. Resistance is 1942-1945, and support is 1917-1922 and 1910. The S&P (second chart) has resistance at 1100 and 1106-1107, and support is 1087-1089 and 1075-1080. The Dow (third chart) faces resistance at 10,048, 10,108, 10,171 and 10,217-10,219, and support is 10,000-10,010, 9975-9984, 9932, and 9850-9900.