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Technical Analysis: Bulls Hang On

It's been a wobbly week for stocks after last week's impressive breakouts, but at least the bulls are hanging on.

The indexes are now trapped between last week's broken downtrend lines and their 50-day averages, which have become important resistance here. On the plus side, they're holding on despite some pretty dismal news, but a close above those 50-day averages would be even better (see charts at bottom).

For the S&P (first chart below), 900, 908, 918 and 935 are resistance levels, while 850 and 820-830 are support.

The Nasdaq (second chart) should have room to run if it can get through 1580-1600. Support is 1500 (a nice uptrend line), 1480 and 1400.

The Dow (third chart) is struggling a little more than the other indexes. Support is 8290-8450 and 8100, while upside hurdles are 8750, 9000 and 9400.

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