Technical Analysis: Volatility Picks Up
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A tough market lately, with high volatility in both directions, none worse than the last two days, which saw equally strong moves in opposite directions. About the only positive we can point to is that seasonality will turn positive in another week or so. Probably not too late to point out once again that Sept. 5 to Oct. 27 is historically the weakest time of the year for the stock market, per Robert Colby's Encyclopedia of Technical Market Indicators. The S&P (first chart below) has important support at 1170, with 1163-1167 below that. 1197-1201 remains the level to beat to the upside. The Dow (second chart) has support at 10,270, 10,240, 10,200 and 10,156, and 10,350 and 10,420 are once again resistance. The Nasdaq (third chart) is faring a little better, but 2100 is once again a big resistance level. 2040-2050 are support.