Technical Analysis: Can Support Hold?

The Nasdaq (first chart below) remains the strongest index here, which is good sign for the market in general, but blue chips will have to catch a bid for the current downtrend to end.

The Nasdaq is barely hanging onto its uptrend here; that line will be at 2470 and rising tomorrow. If that goes, 2430 and 2415 come into play. To the upside, the 200-day average at 2514 would be a very good start, with 2530 and 2551 above that.

1370 and 1360 are support on the S&P (second chart), and 1381, 1385 and 1400-1406 are just the start of resistance.

The Dow (third chart) has important support at 12,303, with 12,200 below that, and resistance is 12,683-12,743 and 12,800.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.

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