Technical Analysis: Another Bounce Gets Sold

Written By
Paul Shread
Paul Shread
Published: Jan 11, 2005
Updated: Jul 16, 2021
1 minute read

So far, the indexes are doing nothing more than consolidating at the lows, as every bounce gets sold. The Nasdaq (first chart below) is so far holding its final uptrend line from August, but the techs are still looking for buyers. 2083 is critical support, and 2115-2120 is resistance. The S&P 500 (second chart) is holding onto a minor trendline and its 50-day average; both levels should be around 1185 tomorrow. Below that, 1172-1175 and 1160-1163 are support, and resistance is 1195-1200. The Dow (third chart) failed after breaking out of a bullish falling wedge today, another index that now looks like it’s just consolidating at the lows, which sets up another possible leg down. Support is 10,560-10,572, and resistance is 10,684-10,710.

Paul Shread

Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.

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