Technical Analysis: Bulls Carry A Big Stick
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An impressive showing by the bulls today, with outside days/bullish engulfing patterns everywhere you look, and fear among options traders remains encouragingly high. Buying pressure wasn't strong enough to declare a major bottom, but it was a solid start nonetheless. The indexes all ended the day at major resistance levels. The Dow (first chart below) is pushing its old uptrend line. If the index can clear that, 10,475 and 10,500-10,520 are next. Support is now 10,350. The Nasdaq (second chart) faces a ton of resistance between 2093 and 2112, and 2073 is now support. The S&P (third chart) faces major resistance from here up to 1205, with 1199-1201 the next key area. Support is 1191. Finally, an encouraging breakdown by bond yields (fourth chart).