Technical Analysis: Market Reverses

Nice reversal today, as we suspected might happen, but the internals were less than impressive, particularly on the Nasdaq. That could make the bounce short-lived, as it did on Wednesday. Until the Iraq situation is resolved, volatility will likely continue to be the watchword, as the market gets whipped around by each new development. If Osama bin Laden is captured, as appears to be a possibility, that could lead to a good rally. Now on to the charts. The Dow (first chart below) has resistance at 7775-7780, 7850 and 7930, and support at 7500 and 7200. The S&P (second chart) has resistance at 830, 835 and 840, and support at 822, 811-812, 806, 800 and 768-775. The Nasdaq (third chart) has support at 1300, 1292, 1280 and 1260, and resistance at 1311-1312, 1320 and 1335.

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