Paul Shread

The S&P 500 (first chart below) bounced right above the critical 839.50 level today. Below that level, 835-837 could provide some support, but 800 or lower would become the likely target. To the upside, 855-860 is first resistance and 865-875 is critical resistance. The Dow (second chart) has critical support at 7875-7902.6, and resistance at […]

Stocks began the month of February on an up note, posting modest gains on positive construction and manufacturing reports. The Nasdaq gained 2 to 1323, the S&P 500 rose 4 to 860, and the Dow climbed 56 to 8109. Volume fell to 1.21 billion shares on the NYSE, and 1.26 billion on the Nasdaq. Advancers […]

The Nasdaq (first chart below) is still clinging to critical support at 1320. 1300 is first support below that, and then 1263-1273. 1332-1335 is resistance. The Dow and S&P (second and third charts) have gone nowhere while stochastics have moved back to the midrange; this consolidation at the lows to relieve oversold conditions is a […]

The Nasdaq (first chart below) managed to hold onto critical support at 1320 today, but not by much. 1300 is first support below that, and then 1263-1273. 1332-1335 and 1340 are resistance. The Dow (second and third charts) pierced the lower trendline of a bearish broadening pattern today but then recovered. Critical support is 7900-7902.60, […]

A stronger than expected manufacturing report boosted blue chips on Friday, but tech stocks slipped on a warning from Applied Materials. The Nasdaq declined 1 to 1320, the S&P 500 rose 11 to 855, and the Dow gained 108 to 8053. Volume rose to 1.51 billion shares on the NYSE, and 1.58 billion on the […]

Dismal earnings from AOL and a weaker than expected fourth-quarter GDP report sent stocks to steep losses on Thursday. The Nasdaq fell 35 to 1322, the S&P 500 lost 19 to 844, and the Dow dropped 165 to 7945. Volume declined to 1.5 billion shares on the NYSE, and 1.44 billion on the Nasdaq. Decliners […]

The S&P 500 (first chart below) is testing the neckline of its recent head and shoulders top in the 870-875 range, a common occurrence before a downtrend resumes. The Dow (second chart) is still some distance from a good test, which would take place in the 8200-8275 range. Support on the S&P is 844 and […]

An early sell-off on war fears raised by President Bush’s State of the Union address turned into a victory for the bulls, as stocks bounced back for modest gains on the day. As expected, the Federal Reserve left interest rates unchanged. The Nasdaq gained 15 to 1358, the S&P 500 climbed 5 to 864, and […]

This bounce has already raised some red flags. For starters, the equity-only put-call ratio closed at a bearish .46 today on a day when the indexes didn’t even take out yesterday’s highs. That’s a lot of call buying for a modest bounce after a 10% decline. The S&P (first chart below) may have formed a […]

Better than expected results from Dow components Merck and Procter & Gamble helped the market recover some of its recent losses on Tuesday. The Nasdaq gained 17 to 1342, the S&P 500 climbed 11 to 858, and the Dow rose 99 to 8089. Volume rose to 1.46 billion shares on the NYSE, but declined to […]

Despite being oversold, the market has sliced through one support after another the last couple of days. The only positive is that the breakdown has occurred on lower volume, but that may well be the only one. The Nasdaq (first chart below) looks like it could hit 1273 before putting in a good bounce, duplicating […]

A mixed UN report on Iraq’s disarmament efforts and a strong response by the U.S. sent stocks to another losing day on Monday. The Nasdaq lost 16 to 1325, the S&P 500 fell 13 to 847, and the Dow dropped 141 to 7989. Volume declined to 1.43 billion shares on the NYSE, and 1.44 billion […]