Technical Analysis: Bulls Make A Comeback

A nice recovery by the bulls today. The Nasdaq (first chart below) recovered its broken uptrend line, a nice show of strength by the bulls. However, the index remains range-bound between 1954-1958 on the upside and 1895-1910 on the downside. The S&P 500 and the Dow (charts two and three) put in nice “morning star” reversal patterns the last three days. For the S&P, support is 1100-1103, 1097 and 1090-1092, and resistance is 1113-1114, 1120 and 1125. The Dow is the only index still in a short-term downtrend, but any move higher tomorrow would change that. Resistance is 9900 and 9960-10,000, and support is 9800, 9775, 9750 and 9730.

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