The Nasdaq (first chart below) is retesting its recent high – but the number of new highs have plummeted from more than 500 to 200, and the number of NYSE new highs have dropped significantly too. That’s a warning sign, but on the plus side, new lows have not begun to increase. Resistance on the Nasdaq is 1685 and 1719, and support is 1670, 1650, 1620 and 1600. The S&P (second chart) put in its second straight doji today; a third tomorrow could be a bearish tri-star pattern. Resistance is 1015 and 1020-1030, and 1000-1004 is support. The Dow (third chart) continues to stall at its upper channel line. 9352 and 9473 are resistance, and 9230-9250 is support. Another low equity put-call ratio reading today (.47) continues to suggest too much complacency. Despite the negative divergences, however, price has yet to turn down, and every dip has been bought.
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