Technical Analysis: Looking for a Catalyst
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Looking over the week's news, it's hard to imagine a catalyst for the bulls other than bearish sentiment and oversold charts. Friday's CPI report is likely to be the worst in 15 years due to rising energy costs, and other than Apple and AMD tomorrow night, there isn't much in the way of earnings reports this week. We're in a time period where bottoms tend to occur, but until one forms, watching and waiting is probably the best approach here. The Nasdaq (first chart below) closed the day just above its 200-day moving average at 2076; if that and 2069 can't hold, 2040-2050 becomes the likely target. 2093, 2100, 2106 and 2110-2112 are resistance. The S&P (second chart) has support at 1180-1182 and 1175, and resistance is 1196-1202 and 1205. The Dow (third chart) has support at 10,218, 10,200 and 10,175, and 10,300 and 10,395 are key levels to the upside.