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Technical Analysis: Dojis

The most interesting technical aspect of today's trading is the large number of dojis — small, unchanged candlesticks suggesting indecision on the part of traders. If the market heads down tomorrow, it would be a good setup for a lower high on the indexes. On the plus side, the indexes held up well today despite Merck's implosion, and option traders continue to show some caution. The Nasdaq (first chart below) faces strong resistance at 1910, and 1885, 1880 and 1870 are support. The S&P (second chart) faces tough resistance at 1118 and 1120, and support is 1110, 1106 and 1102. The Dow (third chart) has support at 10,025-10,040, 10,000, 9978 and 9954, and resistance is 10,100-10,110, 10,140, 10,187-10,200 and 10,229-10,237.