Technical Analysis: Stocks Take a Break

h1 January 7th, 2009

"Inside days" on the major indexes today, reflecting indecision. With the next big piece of news coming from next week's Federal Reserve meeting, stocks could be range-bound for a few days here, unless tomorrow morning's housing and durable orders data is enough of a surprise to move stocks sooner. The Nasdaq (first chart below) is stuck in a range between 2333 to the upside, and 2280-2285 to the downside. The S&P (second chart) faces resistance at 1305-1306, 1310 and 1316, and support is 1295 and 1292. The Dow (third chart) faces major resistance at 11,350-11,426, and support is 11,210-11,240 and 11,160. No help from long bond yields (fourth chart) again today.






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