Technical Analysis: Another Day, Another Reversal
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A day after a big reversal down, we got another one back up that was almost as powerful. One volatile market. Can the market make something of this latest attempt to end the downtrend? The market is certainly due for a bounce, given how oversold it's been. But with a correction that's gone on this long, we wouldn't be surprised to see some more capitulation later on (the elusive 90% downside volume day followed by a 90% upside volume day). On the plus side, we did get a little fear among option traders today. The Nasdaq (first chart below) once again barely held 1865-1870 support; 1853 and 1840 are below that. First support is 1880, and resistance is 1894-1900 and 1910. The S&P (second chart) has resistance at 1100 and 1105.5-1107, and support is 1087-1091, 1084 and 1075-1080. The Dow (third chart) went all the way to 9947 before reversing to close near the highs. The index has support at 10,000-10,008, 9970, 9947, 9900 and 9850. Resistance is 10,062, 10,074, 10,093, 10,121-10,134, 10,162-10,175 and 10,215-10,220.