Technical Analysis: Reversal

We have a possible completed Elliott wave correction at today’s Dow and S&P lows, very high fear levels, and a strong reversal coming off extremely oversold conditions. If the market wants to turn up, that set-up is good enough. Now all we need is some tame inflation data the next two days. The Nasdaq (first chart below) bounced at its November low of 1878. Support is 1917-1922, 1910 and 1900, and resistance is 1931 and 1940-1943. The S&P (second chart) bounced at the critical support level of 1075. Resistance is 1103 and 1107, and first support is 1089. The Dow (third chart) faces resistance at 10,048, 10,108, 10,171, 10,217-10,219 and 10,250, and support is 10,000-10,015, 9975-9984, 9932, and 9850-9900 and 9822.

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