Today produced some uninspiring candlesticks on a retest of last week’s high-volume highs. However, we’d like to have a share of Berkshire Hathaway for every ugly candlestick that the market has been able to overcome in this rally. The only thing that makes these different is that they come on a retest of near-record volume highs. If the market wants to correct, this isn’t a bad set-up. The Dow and S&P (first two charts below) have trendlines just beneath today’s lows; that makes 9116 and 991 important first supports. Resistance is 9262 on the Dow and 1008 on the S&P. The Nasdaq (third chart) has resistance at 1670, 1680-1700, and support at 1630. A gap down below 1647 that doesn’t fill could mark a reversal.
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