Technical Analysis: More Dojis

Not a bad day under the circumstances — stocks were little changed despite bad news on the inflation front. The Nasdaq (first chart below) formed a bullish inverted hammer today, trying once again to carve out support near its 200-day moving average. The next major support levels are 1970 and 1940-1950, and resistance is 1993, 2000, 2008, 2015, 2023 and 2040. The S&P (second chart) put in a doji today, an unchanged day reflecting indecision. 1175-1178 and 1190-1194 are resistance, and 1164 is important support. The Dow (third chart) also put in a doji today. 10,368-10,376 is major support, and resistance is 10,500-10,550, 10,600 and 10,665. The indexes appear to have completed five waves down in their recent decline, a point where Elliott wave theorists might look for a bounce.

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