So much for the lack of downside momentum we discussed yesterday.
Now with the indexes all at major support, do we break or bounce here? About the only good news is that if the bear market sets new lows, major support that held from 1997-2003 isn’t too far below here.
The Dow (first chart below) broke its uptrend today, which is now first resistance at 8637-8650 and rising. First support is 8175.77, the October 27 closing low — and it would be a positive if the index didn’t set a new closing low below that — and the October 10 intraday low of 7882.51 is next.
The S&P (second chart) has critical support at 839.8 — below that, the 2002-2003 lows of 768-789 come into play. To the upside, 900 is important first resistance.
The Nasdaq (third chart) doesn’t have much in the way of support until 1350 if 1493 goes. To the upside, 1604 is important resistance.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.
