Technical Analysis: The Nasdaq Turns Up

While it’s nice that the Nasdaq (first chart below) finally bounced, the index will need a stronger upside move to negate what could be a bear flag forming the last few days. Support is 1650 and 1640, and resistance is 1675-1685. Earnings from Applied Materials tomorrow and Dell on Thursday may have much to do with the next move; both stocks are also trying to turn up from oversold levels (charts not pictured). The S&P (second chart) ran smack into the 985-989 resistance zone (995 is above that), while the Dow (third chart) was rejected at its broken channel line, another potential negative for the market. 974 and 960 are support for the S&P. 9250 and 9350 are resistance for the Dow, and 9128-9160 is support.

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