Technical Analysis: S&P Stalls At Resistance

The Nasdaq (first chart below) sure was an odd chart today: the gap up created a bullish island reversal, but the lack of change from the open created a potential evening star, which could mark a top if tomorrow is a down day. This is a big week for tech earnings, with Intel reporting tomorrow night, IBM on Wednesday and Microsoft on Thursday, so indecision is to be expected here. Support is 1734, and resistance is 1758, 1776 and 1800. Somewhat shakier is the S&P (second chart), which hit a fractional new high at 1015.41 before selling off into the close. Resistance is 1010 and 1015, and 990 is critical support. The Dow (third chart) has major resistance at 9352, and major support at 8975-9000. First supports are 9135 and 9030, and 9261-9278 is first resistance. The Transports (fourth chart) managed to form a “rising three methods” bullish continuation pattern over the last 5 days, but just barely with today’s new closing high. Finally, at .47, the equity put-call ratio is again approaching the .45 danger zone.

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