Technical Analysis: Nasdaq Tests Its Breakdown

The Nasdaq (first chart below) has yet to make a convincing move back above its old 2002 uptrend line that was broken last week. That line will be quite a bit higher next week – call it 1910 for now – so the index will start next week below that line. It will take a powerful move up to regain that trendline and begin a new move up. Support is 1876, 1860, 1856, 1853, 1846 and 1838. The S&P (second chart) faces major resistance at 1107, with 1117 above that, and support is 1094, 1089 and 1086. The Dow (third chart) continues to struggle at 10,163 resistance; if it can break above that, 10,225 is next. Support is 10,085, 10,048-10,068 and 10,030-10,032.