Technical Analysis: Nasdaq, S&P Hang On
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Stocks finally found a little stability today, and with the S&P and Nasdaq holding their recent lows, perhaps we're witnessing nothing more than a retest. But now we need some confirmation of a bottom in the form of a 90% upside volume day, proof that sellers have indeed been exhausted. Until we get that and with stocks in the weakest months of the year volatility will likely be the norm. One modest negative data point today: Big S&P futures traders reduced their long positions this week, but at least they remain net long. In general, sentiment remains positive, even if seasonality doesn't.
The S&P (first chart below) closed just above its 50-day average today. 1461, 1480, 1488 and 1504 are resistance, and support is 1440 and 1427-1429. 2500 is critical support for the Nasdaq (second chart), and resistance is 2570-2580, 2607-2615 and 2631. The Dow (third chart) has support at 13,200 and 13,000, and resistance remains 13,500-13,520, 13,550, 13,630 and 13,700. The 10-year yield (fourth chart) is barely clinging to its recent upside breakout.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association