Technical Analysis: Broken Uptrends

The indexes all broke tentative uptrends today, and no index did more technical damage than the Nasdaq (first chart below), which sliced through a lot of support. 1347-1356 is now first support, and 1336 is critical. To the upside, 1360, 1368-1375 and 1385-1390 are resistance. The Dow and S&P (second and third charts) also broke support in rising volume today. 8250-8280 and 875-883 are now resistance, and 8100 and 8000 on the Dow and 862 and 843 on the S&P are now support. There are a slew of important earnings between now and Tuesday night; how the market responds to those could dictate near-term direction. But with victory in Iraq now priced in, we think the next few months would be a good time for a final washout in this bear market.

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