Technical Analysis: S&P Near Support

The S&P 500 (first chart below) is closing in on a nice support level: 883, which marks the .382 retrace off the October low, and is also a nice chart support level, with a rising trendline off the late October and mid-November pullbacks. Resistance is 900-903 and 912. However, the S&P and the Dow (second chart) could be forming bearish broadening consolidations over the last couple of weeks, suggesting the potential for more downside should support levels not hold. 8338, the .382 retracement on the Dow, is another level to watch, but 883 on the S&P looks like the most important level to us around here, given the additional trendline support at that level. Resistance is 8560 and 8650. The Nasdaq (third chart) has support at 1353 and 1347, and then nothing until 1319. Resistance is 1380-1385 and 1405. Oracle (fourth chart) may have saved a breakdown with tonight’s earnings report. 10.80 is critical support tomorrow, and 11.45 is critical resistance.

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