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Technical Analysis: Still Hanging On

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Paul Shread
Paul Shread
Oct 19, 2006

Stocks held up well today after getting rejected at Dow 12,000, but once again the rally has narrowed, with techs, financials and Transports all down today, a sign of a tiring (and very overbought) market. The Dow (first chart below) faces resistance at 12,050-12,060, while support is 11,950, 11,880, 11,800 and 11,775. The S&P (second chart) faces tough resistance at 1376-1389, and support is 1360, 1354 and 1344. The Nasdaq (third chart) isn’t faring as well as the blue chips here. Resistance is 2354-2355, 2362-2364 and 2375, and support is 2330, 2323-2325 and 2290-2300. Bond yields (fourth chart) remain stalled here. Finally, Transports (fifth chart) are showing more signs of weakness here.






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