A move up on the open tomorrow would break a sharp downtrend on the Nasdaq (first chart below); the question is, how far can it get from there? We should note that a common pattern in presidential election years is weakness into March followed by a strong rally; so far the first part of that scenario is playing out. Resistance levels are 2012, 2020, 2030 and 2040-2045, and support is 2000, 1990 and 1978-1980. The S&P (second chart) has support at 1130-1132, and resistance is 1145-1147, 1150, 1155 and 1160. The Dow (third chart) has support at 10,490-10,520, and resistance is 10,585 and 10,637-10,650. The equity put-call ratio was once again a little more complacent than we would have preferred.
