Looked at one way, the Nasdaq’s correction last week was nothing more than a retest of its April 1 downtrend line breakout (see first chart below). The action the last three days formed something of a bullish evening star, and the index finally took out its 50-day moving average today, but the index still has some tough resistance ahead at 2032, 2042, 2057 and 2079. Support is 2015, 2007, 2000, 1989-1991 and 1982. The S&P (second chart) faces resistance at 1138-1140 and 1145-1146, and support is 1132-1133, 1128-1130, 1126 and 1120. The Dow (third chart) has resistance at 10,500, 10,520-10,530 and 10,570, and support is 10,400, 10,376-10,390 and 10,322.
