Technical Analysis: Waiting For A Break

The market has been stuck in a narrow trading range for almost a month; which way will it break? The Nasdaq (first chart below) continues to look like a small head and shoulders top. So far, it has found support at its 200- and 50-day moving averages at 1972-1973. A close below 1966 and the top for this move could be in. Resistance is 1990, 1995, 2000, 2007-2010 and 2023. A move above 2007 would begin to throw the bearish head and shoulders pattern into doubt. The S&P (second chart) is sitting on important support at 1129. If that goes, 1123-1126 and 1119 are next. Resistance is 1140-1142. The Dow (third chart) has support at 10,300-10,330 and 10,250-10,270, and resistance is 10,440.

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