Technical Analysis: Nasdaq Slips Below Support
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The Nasdaq (first chart below) slipped below the critical 2040-2050 support zone today. Below 2030, that gap at 2004-2008 could be the next target. On the plus side, puts continue to pile up; with options expiry next week, those could provide fuel for a bounce if the bulls can ever get things going. It's surprising that a bounce has yet to materialize despite the exhaustive selling we've seen. To the upside, 2040-2050 is now first resistance, and 2069-2075 is another key test. The S&P (second chart) is pushing pretty deep into some old support levels; 1173, 1170, 1167 and 1163-1165 are potential support levels. To the upside, 1182 and 1188-1189 are the first tests. One potential positive for the bulls is that all the indexes are seeing buying pressure +DI in the indicators at the bottom of the charts dry up. Still, there are other things we'd like to see fall into place, a bond rally among them. Rising long-term rates are no help for stocks here. The Dow (third chart) has potential support at 10,175 and 10,140. 10,300-10,310, 10,350 and 10,400 are key levels to the upside.