Technical Analysis: A Shaky Bounce

Today was the opposite of yesterday, with sentiment improving, but the internals not showing nearly as much strength as they should have; only 60% upside volume and rising new lows is not what you want to see on a decent up day. Also, resistance held the rally in check on all indexes today, another sign of early weakness in the rally. The Nasdaq (first chart) was stopped at 1900 resistance today. Resistance for tomorrow will be at 1905, 1915-1920, 1923 and 1930, and 1880, 1865 and 1842 are support. The S&P (second chart) is struggling at 1044 resistance, and 1050 is above that. Support is 1034, 1025 and 1018-1020. The Dow (third chart) has resistance at 9720-9765 and 9800, and support is 9600, 9500 and 9400. In short, the market needs to take out resistance, and on improving internals; otherwise, this bounce just looks like a backtest of yesterday’s breakdowns.

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