The bulls tried to rescue stocks today, but they didn’t get very far, running into sellers despite staging a nifty reversal off the lows. Such “dojis” — trading higher and lower and then ending unchanged — give us a good range to watch for Tuesday’s market: above today’s highs or today’s lows and we have a breakout.
The Nasdaq (first chart below) had a range of 2537-2589 today, with the 50-day average at 2595 another important level. 2531, 2514 and 2500 are important support levels. The S&P (second chart) traded between 1439 and 1462 today. 1467 is another important resistance level, and 1427-1435 and 1416 are support. The Dow (fourth chart) has obvious support at 13,000 and 12,925, and resistance remains 13,200-13,250. Bonds (fourth chart) are probably due for a good correction, but that moment has yet to arrive.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association