Technical Analysis: Bulls Take Control

Sellers couldn’t take the market down, as the S&P 500 (first chart below) held its breakout nicely, so it was just a matter of time until buyers stepped in and pushed the market higher. 1135 is first support on the S&P, and 1131.5 remains critical support. 1146-1152 is the next resistance zone, and above that, the index could test its yearly high at 1163. Not a bad performance for early October, but the market could still be subject to pullbacks for the next three weeks. The Nasdaq (second chart) broke through major resistance at 1965, which should now be support. To the upside, the index looks like it doesn’t face much resistance at this point until 1990-2000. One more up day would give the Nasdaq its longest winning streak since December 1999. The Dow (third chart) remains the laggard. 10,290-10,300 is major resistance, and support is 10,200 and 10,158.

News Around the Web