Technical Analysis: Stocks Stall at Resistance
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It's no wonder investors chose to express indecision today, with Alan Greenspan's final Federal Reserve meeting, Google's earnings and President Bush's State of the Union address all on tap for Tuesday. In addition to putting in small-bodied days, both the Nasdaq and Dow also put in "inside days," failing to take out Friday's highs or lows. That said, there was a little too much complacency in options measures today, so today's indecision could also potentially mark a peak. The Nasdaq (first chart below) faces resistance at 2315 and 2328-2333. Support is 2300-2305, 2290 and 2278-2283. The S&P (second chart) faces tough resistance at 1288-1290 and 1295, and support is 1275-1280. The Dow (third chart) faces resistance at 10,930-10,960, 11,000 and 11,070, and support is 10,887, 10,845, 10,800 and 10,760. Long bond yields (fourth chart) continue to head in the wrong direction; a negative divergence for the market.