Technical Analysis: Seasonality Turns Positive

The good news is that Monday marks the start of the three most positive months of the year for the stock market. The caveat is that the election remains a wild card, and apart from who wins or loses, another uncertain outcome would likely be viewed as a negative. The Nasdaq (first chart below) has support at 1956, 1950 and 1940, and resistance is 1990-2000 (1984 was today’s high). The S&P 500 (second chart) is pushing 1130-1132 resistance, with 1140-1142 a big level above that. Support is 1124 and 1120. The Dow (third chart) has resistance at 10,050, 10,109 and 10,160, and support is 9950-10,000. Finally, the banks (fourth chart) put in a bullish “three white soldiers” pattern this week, a plus for the bullish case.

News Around the Web