More bearish candlesticks today; it’s a good thing they don’t work anymore (until they do, that is). The Nasdaq (first chart below) best epitomizes today’s action: the index opened at its high, sold off, then recovered most – but not all – of the decline, forming a bearish “hanging man” candlestick. We’ll see how tomorrow goes. Support is 1650, 1620 and 1600, and resistance is 1684 and 1719. The Dow (second chart) is sitting right at the upper trendline of its rising channel, and today’s high (9352) was a perfect Fibonacci .618 retracement of the March 2002 high. Above that level, 9473, the 50% retracement of the index’s all-time high, could be next. 9230-9250 is support. The S&P (third chart) has resistance at 1015 and 1020-1030, and 1007 and 1000 are support. The equity put-call ratio was very low again today (.43), a hint of too much complacency.
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