A tough loss for the bulls today. One warning sign was the failure of the major indexes to put together a strong advance at the same time the last few days. The Nasdaq (first chart below) is now back at the downtrend line it broke out of on April 1. A move back below that line, at about 1975 for tomorrow, could cause selling to pick up. Next supports are 1967, 1960, 1950, 1940, 1930 and 1925, and resistance is 1989-1991, 2000, 2007, 2015 and 2032. Another warning sign was small rising wedges that formed in the S&P and Dow the last four days (charts two and three). The S&P has support at 1115, 1110 and 1098-1102, and resistance is 1120, 1126, 1133-1140 and 1145. The Dow (third chart) has support at 10,300, 10,270, 10,220, 10,180 and 10,108, and resistance is 10,322-10,330, 10,370-10,400, 10,440 and 10,520. The best hope for the bulls at this point is that the market decides Fed Chairman Alan Greenspan has better things to say tomorrow morning at 10 a.m. Another thing we’d like to see is more fear.
