The Dow (first chart below) closed right at 9200-9250 resistance today. Above that level, the blue chips have room to run. 9100-9110 is first support, and 9060 is critical. The Dow is wound up in a 150-200 point range and will have to decide soon which way it’s going to break. The Nasdaq (second chart) faces tough resistance in the 1727-1747 range, and support is 1710, 1700 and 1680. The S&P (third chart) faces resistance at 990, 993 and 998-1002, and support is 979 and 962. The internal and sentiment pictures were mixed today, with relatively high put-buying, but a new low in the VIX, the options volatility index, and a high TRIN, indicating potential distribution.
Don’t miss the Company of the Week every Monday at http://www.wsrn.com/COW/.