Technical Analysis: Strong Rally
Page 1 of 1
The back-to-back 80% upside volume days on the NYSE the last two days are a potentially bullish development, coming two weeks after a 90% downside day. The big question is whether sellers have been exhausted enough for sustained buying to kick in, and only time will tell. The big test will be how the Nasdaq (first chart below) handles the major resistance level of 2240-2245, with 2229 the first test for the index. Support is now 2215, 2200 and 2185. The Dow (second chart) faces tough resistance at 11,276 and 11,330, and support is 11,200 and 11,100-11,120. The S&P (third chart) faces resistance at 1290, 1296 and 1300, and support is 1281, 1275 and 1267. Long bond yields (fourth chart) remain stuck in neutral here.