Technical Analysis: A Bounce Attempt?

The Nasdaq and S&P (first two charts below) are trying to bounce from oversold levels. While we’d prefer a close in oversold territory, some upside follow-through to today’s action is possible. The Nasdaq has resistance at 1915-1920, 1927-1930, and 1937-1940, and support is 1887-1890 and 1878-1880. The S&P has resistance at 1063-1064, 1069-1074 and 1083-1093, and support is 1053, 1050, 1047 and 1040. The Dow (third chart) has barely corrected at all, and has moved higher since the start of the month while the Nasdaq has corrected. While that’s a sign of rotation into blue chips, it’s also a hint that the Nasdaq may have more upside potential on any bounce. The Dow faces major resistance at 10,008, and 9900, 9882 and 9846-9860 (9850) are support.

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