The Dow and S&P (first two charts below) are winding up in a tight trading range here. Which way will they break?
On the plus side, both indexes are holding some semblance of a rising channel, which holds the possibility of further gains. But both have been stymied at a downtrend line off the highs set earlier this month. A move above today’s highs of 1285 and 11,554 could be good for some nice upside, while a move below 11,400 or 1270 could create room to 11,200 and 1250.
The Nasdaq (third chart) is in a trickier spot, technically speaking; its stronger rise hasn’t formed the clean patterns present on the Dow and S&P. Support is 2362, 2350 and 2335, and resistance is 2400 and 2415.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.
