Technical Analysis: Buying Pressure Returns

The best thing about today was the strong internals, which suggests that buying interest may have finally returned. The Nasdaq (first chart below) faces its next big test at 1970-1973, and 1953 should now be strong support. The S&P (second chart) broke above a rising resistance line today, another bullish development. We’d now like to see 1107-1110 hold as support. Resistance levels are 1115-1117, 1120, 1126 and 1130. The Dow (third chart) took out major resistance at 10,048, but stopped at a rising resistance line. If it can keep going, 10,170 and 10,225-10,250 are the next resistance levels, and 10,050 should now hold as support.

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