Technical Analysis: Nasdaq 100 On Shaky Ground

The Nasdaq 100 (first chart below) put in an imperfect island reversal today – essentially stranding investors who bought in the eight trading days since the November 21 gap up – a reversal that gives the index downside potential to 1020 or lower. The index would first have to break 1050 support, however. Resistance is 1083-1088. The Nasdaq (second chart) pierced 1420-1426 support before reversing. A close below 1419 would be a negative, and 1446-1449 is resistance. S&P 925 (third chart) is another big resistance level that will have to be cleared for the rally to resume. 912 and 900 are support. The Dow (fourth chart) is trapped between 8650-8700 to the downside and 8750-8800 to the upside. Respect a clean break of that zone. The equity-only put-call ratio closed around the .80 area again today, so that indicator remains supportive, if not quite bullish.

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