Technical Analysis: Dow, S&P Hang On
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The Nasdaq (first chart below) gave up its August uptrend line today. 2150 looks like the next solid support, and 2195 is resistance. The Dow and S&P (second and third charts) find themselves right on critical support after giving up the breakouts of the last two days. One problem with rising resistance (and falling support) is that the energy it takes to break through it can exhaust the trend, creating what some refer to as a "throwever," a last thrust before reversal. The indexes could be starting a "C" wave down here to complete the correction begun in May. The S&P faces resistance at 1302, 1306 and 1310, and next support levels are 1293 and 1290. The Dow's next support levels are 11,330 and 11,250, and first resistance is 11,420-11,430. Bond yields (fourth chart) closed right on resistance today.