Technical Analysis: The Dow Holds Its Breakout

The Dow (first chart below) held 9352-9361 support nicely; an important support for the index. First resistance is 9470, and 9700 is possible based on the size of the trading range the index broke out of yesterday. But the S&P and Nasdaq (second and third charts) now must confirm that breakout by taking out 1015 and 1776. 1004.6 is first resistance on the S&P, and support is 990-995. 1740 is support on the Nasdaq. The CBOE equity put-call ratio is starting to get a little low at sub-.50, and the VIX (not pictured) has clearly broken below 20, another indicator to keep an eye on. Heading into September, the one big losing month for the market since at least the mid-1980s, complacency is not a good thing. Finally, one very nice breakout in Mr. Softie today (fourth chart), and on big volume too. MSFT should see 28 or higher if that breakout is for real.

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