Technical Analysis: Buying The Dip Fails
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An interesting turn of events today, as the intraday dip-buying that had been so profitable lately failed. As soon as traders think they have it figured out, the market changes. Or as Joe Granville once remarked, as soon as you think you have the keys to the market, they change the locks. The question is, will it represent a turning point? The indexes are at some major resistance points here, but we haven't seen much in the way of excessive bullish sentiment that could mark an intermediate term top. The Nasdaq (first chart below) continues to get stopped at the big 2200 resistance level. Support is 2172, 2164, 2150-2156 and 2144. The S&P (second chart) faces resistance at 1229, 1233 and 1236, and major resistance at 1244-1255. Support is 1225, 1220-1222 and 1217. The Dow (third chart) faces resistance at 10,650-10,673, 10,700 (where it failed today) and 10,750, and support is 10,600 and 10,565-10,580.