Technical Analysis: Close But No Cigar

A powerful rally indeed, and if the Dow (first two charts below) can take out resistance in the 9003-9077 range, it could go a lot higher. The S&P and Nasdaq (charts three through six) have already broken through major resistance and now must hold. For the S&P, 965 and 950-960 are important supports, and for the Nasdaq, 1548-1552 and 1530-1540 are critical levels. The most amazing thing is that open interest in QQQ puts continues to grow. The market may well correct after today’s poor action, but until shorts begin to cover, higher highs remain possible.

Don’t miss the Company of the Week – every week – at

Special report: For a free introduction to technical analysis and chart patterns, visit,1785,2571_5/00051,00.html.

News Around the Web