Technical Analysis: Bounce Attempt
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If stocks are going to rally, they got off to a good start today, with new lows in the Dow and Nasdaq that then reversed. That kind of action can catch traders leaning the wrong way, but now we need to see follow-through to the upside. The Nasdaq (first chart below) broke below its October low of 2025, then reversed to close back above that level. Resistance is 2050, 2065 and 2090, and support is 2025, 2012 and 2000. The Dow (second chart) broke last month's low at 10,700 before finding support at 10,681. Resistance on the blue chips is 10,850, 10,900 and 10,938. The S&P (third chart) faces resistance at 1240, 1245 and 1250, and support is 1232, 1228, 1225 and 1219. Unfortunately, stocks weren't the only things putting in a reversal today. Long bond yields (fourth chart) formed a very nice tri-star bottom with today's move.