Still waiting for a break from the trading range. The Dow and S&P (first two charts below) put in something of a bearish “evening star” reversal pattern the last three days. Will it work, or lead to just another whipsaw? It won’t take much of a move to find out. The Dow is trapped in a very narrow range, between 9130 to the downside and 9352 to the upside. A break of either boundary of that range should lead to a strong move. The S&P has support at 982, and first resistance is 997-1000. The Nasdaq (third chart) has support at 1720, 1700 and 1685, and 1740-1747 is resistance. Finally, the equity put-call ratio was high today, but most of that trading came in the last 30 minutes, suggesting large trades by a few buyers instead of widespread fear.
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