Technical Analysis: The Indexes Reverse Again

So far we have a bounce on lower volume with uninspiring internals; can the bulls turn it into more than a short-term bounce? So far the Dow, S&P and Nasdaq have formed bear flags on the intraday charts (see the S&P intraday chart, first chart below). The 8931-9000 range on the Dow (second chart below) is proving to be stubborn support; the Dow will have to give that up to get a shot at our major supports of 1540-1550 on the Nasdaq and 945-948 on the S&P (charts three and four). To the upside, resistance is 9061-9066, 9100 and 9262 on the Dow; 986.82-987.76, 989, 995 and 1007 on the S&P; and 1635 and 1666-1719 on the Nasdaq.

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