Technical Analysis: Rally Attempt
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The indexes tried to reverse back up today, and on higher volume than yesterday's breakdowns. With new money coming into the market tomorrow, the bounce could be extended a while. Starting next week, however, the market enters its historically weakest period, from Sept. 5 to October 27, according to Robert Colby's Encyclopedia of Technical Market Indicators. The market has declined 62% of the time during that period in the last century. The Nasdaq (first chart below) faces resistance at 1842, 1850, 1856 and 1866, and support is 1830, 1821 and 1808-1810. The S&P (second chart) faces major resistance from 1106-1112, and support is 1098-1102, 1095 and 1087-1090. The Dow (third chart) has support at 10,135, 10,120, 10,100 and 10,060-10,074, and resistance is 10,200-10,220 and 10,260.