The Nasdaq (first two charts below) turned down from an overbought condition on rising volume today; a hint that this pullback may last more than a day or two. The last time -DI (selling pressure) was this low, the index went nowhere for a month. 1860-1865 is first support and then 1840, and 1900-1950 is major resistance. The S&P (third chart) has support at 1018, 1015 and 1010, and 1033 and 1051 are resistance. The Dow (charts four and five) is struggling at 8610 resistance; 9700-9800 are next if the index can break out, and 9460-9500 and 9352-9361 are support. The banks (sixth chart) are still in a set-up that favors down. IBM (seventh chart), on the other hand, could give the market a boost if it can get into that gap north of 90.40. Tis the time of year for seasonal weakness, and in a pre-election year, the Dow has tended to peak in early September and then head down into October. Will the pattern repeat this year?
