Technical Analysis: Oversold

It’s been a very long time since the Dow (first chart below) spent an entire day below its 50-day moving average. About the only solace for the bulls is that the S&P (second chart) is hanging on. On the plus side, the broader market is now oversold, and there was vigorous activity in puts today. Enough for a bounce? The S&P has decent support at 1137; if it can hang on, the market might get that bounce. Resistance on the S&P is 1143, 1147 and 1150. On the Dow, 10,550-10,560 is strong resistance, and 10,600 and 10,650 also look tough. Support is 10,400 and 10,350. The Nasdaq (third chart) barely held 1991 support today. 1978 is below that, and resistance is 2022 and 2035.

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