Technical Analysis: Overhead Supply
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On the plus side, the internals were very strong today, with advancers leading decliners and new 52-week highs and lows both heading in the right direction, and major support levels held. On the downside, we had a little too much complacency among options traders for a down day. The Nasdaq (first chart below) finally took out 2023 resistance, only to run into sellers at 2033-2040 resistance, ending the day lower than it began. A lot of overhead supply out there. Support is 2000-2007, and resistance is 2023 and 2033-2040. The S&P (second chart) got stopped at the bottom of the 1147-1150 resistance zone today. Support is 1138, and first resistance is 1142-1144. The Dow (third chart) stalled at the bottom of the 10,500-10,570 resistance zone, but it hung onto support at 10,433.