Technical Analysis: Nasdaq Continues to Puzzle

The Nasdaq (first chart below) finally started to outperform today — yet there were more declining issues than advancing ones on the index today. Even when they outperform, the techs manage to give us pause. That said, the index did manage to take out both its downtrend and 50-day average today, so there’s no arguing with price. If the index can clear a resistance band between 2100 and 2120, the index could be off to new highs. Support is 2080 and 2067. The Dow (second chart) is pushing 11,000, another big level to watch, and support is 10,850-10,868. The S&P (third chart) paused at the bottom of the major 1227-1244 resistance zone today — that’s the point where the leg up off the August 2004 lows will equal the first wave up off the October 2002 lows, a place where Elliott wave theorists would watch for a deep correction. Support on the S&P is 1215-1218.

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