Technical Analysis: S&P Rockets Back To Resistance

Very impressive strength and momentum today; is it more than a long overdue bounce? The S&P (first chart below) will provide the first clue; above 1164 and the index could run, with 1178 the next big level above that. We’d like to see 1154 hold to the downside. The Nasdaq (second chart) faces resistance at 1968-1972 and 1990, and ideal support is 1946. One positive for the techs here is that they didn’t follow the broader market to a new low yesterday, and there were a number of positive divergences (higher lows) in the indicators on the Dow and S&P when the indexes made a new low. The Dow (third chart) faces resistance at 10,250 and 10,350-10,400, and support is 10,150 and 10,100-10,120.

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