The Dow and S&P (first two charts below) are right on support here; much lower than 12,743 and 1385 and 12,500 and 1370 come into play.
To the upside, 12,800 and 13,000-13,100 and 1400-1406 and 1430-1435 are the levels the bulls have to beat. Stocks Technical Analysis Options Trading Strategies, Automated ::
Stocks Technical Analysis Options Trading Strategies, Automated Stock Trading . analysis of AMD (read here) things to notice 1- break of support level at
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The Nasdaq (third chart) looks quite strong compared to its blue chip counterparts, holding above its late October downtrend line at about 2430, with 2390-2400 below that. To the upside, 2500-2550 is a major resistance zone.
In short, a choppy market, with modest progress followed by sharp pullbacks — a trend we wouldn't be surprised to continue until the subprime mess finally clears. For an example, see the fourth chart below for a similar trading pattern following the crash of 1987.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.
 NASDAQ Gives SCO The Boot
 TI's Less Than Terrific
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