Technical Analysis: Stocks Try To Stabilize
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Back to weekly charts after the recent carnage. The Nasdaq (first chart below) looks pretty broken after last week's action — 1900 and 1850 are possible supports, but 1750 looks like a much stronger support at this point. That said, we had extreme readings in the put-call ratios on Friday, so some bounce appears likely, perhaps even a strong one, assuming earnings reports can cooperate. Resistance for the Nasdaq is 1940-1968, with 1985-1992 above that; a big hole for the techs here. The S&P (second chart) is another index in a big hole here, with first resistance at 1148-1153 and major resistance at 1160-1163. 1140, 1130 and 1125 are support, with 1100 below that. The Dow (third chart) has major support at 10,000, and resistance is way up at 10,350-10,360. On the bright side, at least the indexes have a lot of room to bounce before they hit major resistance levels.