Technical Analysis: Funny-Looking Candlesticks

The Dow (first two charts below) formed a bearish engulfing candlestick today, opening above Friday’s trading and closing below it, while the S&P (charts three and four) and the Nasdaq (charts five and six) formed candlesticks that resemble bearish “hanging men,” closing below the open on a gap up (on the S&P, best viewed on the SPY tracking stock). On the Dow, support is 10,500, 10,450 and 10,350, and resistance is 10,600 and 10,673. On the S&P, 1132 and 1127 are important supports, and 1147 is major resistance. On the Nasdaq, first support is 2128-2130, and 2114 is critical. 2150-2163 is a major resistance zone; above that, 2200-2216 comes into play.

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