Technical Analysis: Sellers Remain In Control
Page 1 of 1
Sellers remain firmly in control despite one of the most sustained high put-call readings in recent years. While that will be good support for a turn when it comes, the turn hasn't arrived yet. That said, it's expiry week, and with puts outnumbering calls by 13 to 1 at 34 on the QQQ, the Nasdaq 100 tracking stock, the market should find short-term support around here. Knock on wood. The next important support level for the Nasdaq (first chart below) is 1842, and below that is 1822. Resistance is 1897-1900, 1910, 1925 and 1946. That's a nice-looking doji star on the techs, if the bulls can turn it into something with an up day tomorrow. The S&P (second chart) is one of the few positives for the market, hanging onto its 200-day moving average at 1080. Below 1975, the bullish case for the S&P would be weakened, but good support can be found every five points down to 1050. Resistance is 1087-1091, 1095-1096, 1103 and 1107. The Dow (third chart) has major support at 9852 and 9822, and resistance is 9950, 10,000-10,030 and 10,075.