So much for yesterday’s call; the only gap up that held today was Intel’s. We’ll stick to setting the levels and let the market dictate direction. If nothing else, the failure of today’s gap to hold suggests a tired market, or one that isn’t seeing the hoped for signs of recovery. Microsoft’s earnings tomorrow night may not be much help, since the company has repeatedly said it doesn’t see much of a rebound in tech spending this year. It is interesting to note that downside TICK readings on the NYSE have picked up the last two days, as have new lows, two signs of potential momentum change to keep an eye on. Nasdaq new lows remain low, however. The Dow (first chart below) is closest to critical support, the 9000 level. Below that, 8931-8950 is a possible bounce point, and then 8500, the 200-day moving average, could come into play. The Dow faces resistance at 9110-9116, 9153, and 9238-9278 and 9352. The S&P (second chart) has support at 990; below that, 972 looks possible. 1000, 1004, 1010 and 1015 are resistance. The Nasdaq (third chart) has support at 1734, 1715-1720, and 1685-1700. 1760 is resistance.
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