Technical Analysis: Market Continues Freefall

The market has been slicing through support with abandon lately. If there’s any good news, it’s that the market has reached short-term oversold levels, and option traders continue to show caution. The Nasdaq (first chart below) has its 50-day moving average at 1855; below that, 1850, 1840, 1830 and 1820 are possible support levels. To the upside, 1876-1885 is one big resistance area. The S&P (second chart) has its 50-day average at 1101, right at round number support. If that goes, 1092-1095 and 1087-1090 are possible support zones. Resistance is 1106, 1110, 1114, 1117 and 1120. The Dow (third chart) has support at 9954, 9900-9914, and 9860, and resistance is 10,000, 10,025-10,050, and 10,100.