It’s been a long time since we’ve seen a pullback this relentless. The Nasdaq (first chart below) has three downtrend lines in play now, each steeper than the last, a sign of a strengthening downtrend. Rallies get sold, bearish sentiment is no help, and the index is unable to mount a sustained rally even from deeply oversold levels. At some point the trend will reverse, but the benefit of the doubt goes to the bears for now. The Nasdaq faces resistance at 1932, 1945, 1960 and 1968-1972, and support is 1900-1904 and 1850, with 1750 quite possible at some point. The S&P and Dow (second and third charts) hit new lows for the year today. The S&P has support at 1130, 1125 and 1118, and resistance is 1140, 1147, 1154 and 1161-1164. The Dow (third chart) is the weakest looking index here; below 10,000, 9750 is possible. Resistance is 10,070-10,100, 10,200-10,250 and 10,350.
