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Technical Analysis: It's a Bear's Market

Until 12,743.2 goes on the Dow (first chart below), it's still technically a bear market, as we were reminded today.

It would take a close at that level or higher to confirm the Transports' (second chart) higher high and generate a Dow Theory bull signal, reversing November's bear signal.

Until then, Dow Theory reminds us, we are still in a bear market, and will have days like today to remind us.

12,300 and 12,160-12,200 are next supports on the Dow, and 12,527 is first resistance.

1310 is next support on the S&P (third chart), and 1340-1350 is first resistance.

2280 and 2250 are the next support levels on the Nasdaq (fourth chart), and 2300, 2311 and 2322 are the first hurdles to the upside.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.