Technical Analysis: The Freefall Continues
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The last nine trading days have been all but straight down for tech stocks, with even the smallest bounces sold. The market has been oversold since last week, but all that has done is slow the decline. Even short-covering in an expiry week has been of little help. So can the market turn back up? The Nasdaq (first chart below) faces resistance at 1921, 1930 and 1940-1946. 1897-1900 is important support; below that, 1880 and 1865 come into play. The semiconductor sector (second chart) broke 433 support today. 394, the top of the first leg up off the October 2002 lows, now becomes extremely important support. The S&P (third chart) is the one bright spot here, holding 1106-1107 support again today. 1103 is critical support, and resistance is 1118 and 1123. The Dow (fourth chart) has support at 10,200, 10,162-10,175, 10,121-10,134, 10,093 and 10,074, and resistance at 10,225, 10,257-10,286 and 10,307.