The Nasdaq (first chart below) managed to hold onto critical support at 1320 today, but not by much. 1300 is first support below that, and then 1263-1273. 1332-1335 and 1340 are resistance. The Dow (second and third charts) pierced the lower trendline of a bearish broadening pattern today but then recovered. Critical support is 7900-7902.60, and critical resistance is 8200-8250. The S&P (fourth chart) has critical support at 839.50, and 865 and 875 are critical resistance. Finally, for the second year in a row, the January/December indicators are flashing a warning sign for the year ahead: January was a down month for all the indexes, and the December lows were undercut, a combination that has historically signaled a rocky year. Stocks could be headed for their fourth straight rough year.
Don’t miss the Company of the Week – every week – at http://www.wsrn.com/COW/.
Special report: For a free introduction to technical analysis and chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_5/00051,00.html.
