Technical Analysis: The Wait Continues
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On one hand, it's a positive that the Nasdaq (first chart below) continues to hover below the major resistance level of 2097-2100. On the other hand, the longer the index takes to clear that level, the more likely it becomes that supply will eventually overwhelm demand. The indexes all formed "inside days" today completely within yesterday's trading range which could argue for a pullback since they occurred in an extended uptrend. That said, sentiment, in the form of the put-call ratio, remains very supportive here. Support levels on the Nasdaq are 2087, 2080 and 2075, and resistance is 2100, 2112 and 2118. The Dow (second chart) ended the day right on an uptrend line. If it heads down tomorrow, the next support levels are 10,560, 10,530 and 10,500, and resistance is 10,620-10,625 and 10,660-10,673. The S&P (third chart) has important support at 1210-1211, and resistance is 1218-1220, 1223-1225 and 1229.