Technical Analysis: Searching for a Bottom
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We've had all the bearish sentiment we need for a bottom, but we still lack buyers to make it happen.
The bank sector (first chart below) continues to be the most important index here and hopefully will find support here near its 1998 lows. It's the one sector we most need to see buying in.
The Dow (second chart) is sitting on top of a support zone that goes back to the 2000 peak. We expect the index to find support between here and the 2006 low of 10,670, since mid-term election year lows have held for at least a few years since 1934. To the upside, 11,500 and 11,634-11,750 are resistance.
The S&P (third chart) is hanging on near its March closing lows of 1273-1276. Below 1270, 1257 was the intraday low. To the upside, resistance is 1304 and 1315.
The Nasdaq (fourth chart) has a lot of support around 2256-2280. To the upside, 2330, 2350 and 2400 are the levels to beat.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.