Technical Analysis: Techs Prop Up The Market

The Nasdaq (first chart below) is propping up the market nicely here. The S&P and Dow (second and third charts) hung onto their uptrends today and found buyers. The Nasdaq even took out rising resistance today, a plus. The one negative is that all that occurred on lower volume than yesterday, but for now, the rally remains intact. A move back below 1890 on Monday would be a disappointment for the Nasdaq, with 1876-1880 support below that, but the picture wouldn’t begin to turn negative unless the index broke its uptrend at 1870. Resistance is 1900, 1920 and 1933-1940. The S&P stalled again at 1125-1126 resistance. Above that, the index could meet resistance at 1130 and 1135. 1118 and 1115 are major support. The Dow held on again today. Support is 10,280 and 10,250, and 10,315-10,337, 10,363 and 10,400 are resistance. Finally, another positive: a new recovery high in the Transports (fourth chart). Under Dow Theory, we now need a close in the Industrials above 10,750 to confirm a new uptrend.

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