We’re going to have to give the market points for holding up today; finishing flat on a GE earnings warning gets points for resilience, and there was also some decent bearish sentiment among options traders today. On the other hand, the huge drop in new highs today was a negative, so we need to see those begin to expand again. Monday is a bond market holiday, so stocks could have an interesting day with the light volume and absence of major news. The indexes, unfortunately, continue to look very much like bearish broadening tops here (see charts below). The Nasdaq faces resistance at 1940-1950, and support is 1900, 1880 and 1860. Next week is expiry week, and Max-Pain, the point where most options expire worthless, is at about 34.50 on the QQQ, about 1.5% down from here. On the S&P, 1050-1055 is resistance, and 1030-1034, 1025 and 1018-1022 are support. On the Dow, support is 9650, 9600 and 9500, and 9800 is major resistance.
