Technical Analysis: Nasdaq Stopped At Resistance

The Nasdaq (first chart below) was stopped at its downtrend line and the middle of the bearish “three black crows” formed recently, a common resistance point. Resistance is just above 1350 and 1368, and support is 1340-1347, 1330, 1320 and 1302. The three black crows suggests downside potential to 1280. A similar pattern in early August took some time to work out, but we think this one may work out sooner than later. The biggest danger facing the Dow and S&P (second and third charts) is that they could form head and shoulders tops here. Support is 8200-8300 on the Dow and 865-870 on the S&P, and resistance is 8450-8550 on the Dow, and 885, 894 and 900 on the S&P. Finally, the US dollar index (fourth chart) also put in three black crows recently. That could be a negative for stocks and a positive for gold and gold shares.

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