Technicals

Dow Consolidation May Be Sign Of Future Weakness

We have started to see consolidation ahead of the yearly high of 9,437 which could lead to a breakout today. A retracement is a possibility but support at 9,200 appears solid and should limit downside risks. A failed test of support may lead to range bound price action over the near-term.

The S&P 500 is threatening Fibo resistance at 1,012 which has remained formidable and could limit upside potential. A break above the level would be a strong bullish sign leaving only the October 14th high of 1,044 as resistance before a return to 1,200. However, a failed test leaves potential for a retrace back to 992.

The NASDAQ has failed to break above 2,000 which is being reinforced by resistance at 2,011-61.8 Fibo of 2,473-1,265 leaving a potential retrace back to 1,900. However, If the tech laden index resumes its bullish trend then a test of 2,059-the 61.8% Fibo of 2,518-1,265 remains a possibility.