Note: The Technical Analysis column will return on January 3. Happy Holidays and best wishes for a prosperous 2005.
Once again, while the market remains in a positive period between now and January 3, the indexes sure are beginning to look extended. The Nasdaq (first chart below) is the index to watch. The index has been forming a bearish rising wedge this month. The top trendline is at 2180 and rising, and the bottom trendline is at 2140 and rising; a strong break of either line could lead to a big move in that direction. The S&P 500 (second chart) could also be forming a rising wedge. Resistance is at 1215 and climbing, while support is 1203-1204 and rising. The Dow (third chart) is the one index that looks strong here, but it faces major resistance between here and 11,000. Support is 10,750, 10,700 and 10,640-10,650, with an uptrend line at 10,725 and rising.