Technical Analysis: Hesitating At Resistance

The indexes are stalling at some pretty key resistance levels here, not the least of which are the old necklines of head and shoulders tops on the Dow and S&P at 8250-8300 and 875-880 (see first two charts below). If the indexes can overtake those levels, the 200-day moving averages at 8370 and 885 are next, and above those the recent highs at 8522 and 895-900. 8100 and 862 are support. The Nasdaq (third chart) is struggling at the recent 1425 high; if it can clear that, 1460 could be next. 1368-1375 and 1360 are support. A gap down and lower close tomorrow would look like a pretty good reversal – and potential lower highs for the indexes. The unemployment report and the start of earnings season will compete with the latest war news for traders’ attention. The equity put-call ratio is showing a decent level of skepticism at the .70 level, but we already got a topping reading below .45 at the recent highs.

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