Technical Analysis: Just A Pullback?

Today’s pullback didn’t cause any technical damage, but the rising volume on the NYSE is cause for some concern. We’d like to see the Dow and S&P (first two charts below) hold near today’s lows, specifically 8518 on the Dow and 898 on the S&P. Below those levels the bounce off Friday’s lows would begin to look overlapping and corrective. To the upside, the indexes need to clear 8650-8680 on the Dow and 916 on the S&P or the risk for more short-term downside remains. The Nasdaq 100 (third chart) was stopped almost exactly at its August high today (1052.50). The QQQ, the Nasdaq 100 tracking stock, is likely to spend the rest of the week between 25 and 26 because of the imbalance of puts and calls at the 25 and 26 strike prices. The Nasdaq (fourth chart) has resistance at 1400, 1420 and 1426, and support is 1378, 1367, 1361, 1357 and 1347. Oracle (fifth chart) looks like it may have another 2 1/2-point down leg coming if it can’t clear 11.50. The company reports tomorrow night.

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.