Technical Analysis: Dow, S&P Hit Resistance

The Dow and S&P (first 5 charts below) ran into major resistance today, the August highs and the neckline of a massive head and shoulders top in the S&P 500 (fifth chart). A move above 9077 on the Dow and 965 on the S&P could give the indexes room to 9300-9400 on the Dow and just above 1000 on the S&P. 923-927 on the S&P is important support, and the Dow has support at about 8825 for tomorrow. A deep correction from the August highs would likely be a good thing for the bullish case, forming a potential inverse head and shoulders bottom on the Dow and bringing some fear back in to the sentiment indicators. The Nasdaq (sixth and seventh charts) faces tough resistance at 1515-1520, 1560, 1600 and 1700. Support is 1465, 1446 and 1420-1426 (critical).

Don’t miss the Company of the Week – every week – at http://www.wsrn.com/COW/.

Special report: For a free introduction to technical analysis and chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.