Technical Analysis: S&P Hits Major Resistance

The S&P (first chart below) was stopped at the critical 940 resistance level. 919-920 is critical support. If the index is going to top out, this would be as good a place as any. The Nasdaq and Nasdaq 100 (second and third charts) cleared their December highs, but only the Nasdaq was able to hold the breakout, a possible negative divergence unless the NDX can take out 1155 on a closing basis. Support on the Nasdaq is 1500, 1467 and 1435-1440. The Dow (fourth chart) once again held the critical 8522-8530 support level today, but a third retest might not hold. Support below that is 8460 and 8400. Option players continue to show skepticism, which is a positive for the bullish case, but with the Nasdaq and S&P indexes at major resistance levels, and all indexes overbought, now would be as good a time as any for a pullback.

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