Might as well use the same line we used after yesterday’s sell-off: Another day, another reversal, only this time back up. Is the market ready to break out of its trading range at last? If the Dow (first chart below) can clear 9352, the answer is likely yes. Above that, 9470, the 50% retracement of the Dow’s all-time high, is next. 9100 – the Dow’s rising trendline where it bounced today – is critical support for Monday. The Nasdaq (second chart) has reformed its lower trendline. 1710 is first support, and 1700 and 1690 are below that. The index closed right at the bottom of the 1727-1747 resistance zone, and 1776 is above that. The S&P (third chart) has support at 980, and resistance at 1000, 1010 and 1015. The internals were poor today, with only 75% upside volume on the NYSE and 64% on the Nasdaq. The market will have to build on that to sustain this rally.
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