Technical Analysis: No Break For The Bulls

An unrelenting sell-off so far. The Dow and S&P (first two charts below) broke down and never even went back to retest broken support; that’s quite some selling, particularly coming straight off new rally highs. So where are the strong support levels? The last time the Dow consolidated for any length of time was down around 9900; the S&P, down around 1060-1075. Those are strong supports. However, the round numbers of 10,000 and 1100 could provide some support, particularly with a very oversold market and very high fear levels. Resistance levels are 10,250 and 10,300-10,321 on the Dow, and 1112-1115, 1122 and 1126 on the S&P. The Nasdaq (third chart) also keeps slicing through support. 1940 and 1913-1920 are the next support levels, and resistance is 1964, 1978 and 1991.

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