Technical Analysis: Stocks Still Stuck
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Stock market bulls continue to have everything they need to launch a new wave up, yet so far they have been unable to do much of anything with it.
The latest positive data point was this week's Investors Intelligence survey, which at 36.7-35.6 percent bulls-bears matches mid-2006 as the lowest reading in five years. For those who might not remember, mid-2006 was the starting point for a 3,000-point rally in the Dow.
It's the latest indication that everyone who wants to sell has had every chance to do so, yet stocks remain stuck in a trading range not far off last month's lows, as a convincing breakout of the current trading range has yet to occur.
The S&P 500 (first chart below) faces resistance at 1360, 1370-1380 and 1406, and support is 1340, 1310-1316, 1300 and 1270-1275.
The Dow (third chart) has support at 12,250, 12,092 and 11,971-12,000, and 12,500-12,800 remains a big upside hurdle.
The Nasdaq (fourth chart) has support at 2300, 2252 and 2200-2221, and resistance is 2350-2370 and 2387-2419.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.