After a fairly abrubt, unorderly pull back off the highs in the first couple days, this latest consolidation is actually shaping up to look fairly healthy. Friday’s big drop wasn’t a major concern considering volume levels were below average and less than the day before. In addition first level support levels are holding for now despite soaring crude prices which is very encouraging. Let’s take a quick look at key support levels to keep an eye on for the following week. <\/p>\n
You see the Nasdaq bouncing off the first level of support of the upward trend line on Friday around 2150. The Naz looks as though it will hold that level, but if not the area of previous resistance around 2100 becomes the next major level of support.<\/p>\n<\/p>\n
The Dow continues to trade in a fairly tight range and maintains a position above support where the 50 and 200 day moving average converge around 10,500. I’d like to see the Dow break out of this range, providing a signal that the market is firing on all cylinders.<\/p>\n<\/p>\n
The S&P appears to be settling in at previous highs around 1225 and its shaping up to be a fairly strong level of support. If it can’t hold here, keep an eye on that upward trend line, which would provide the next level of key support.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
After a fairly abrubt, unorderly pull back off the highs in the first couple days, this latest consolidation is actually shaping up to look fairly healthy. Friday’s big drop wasn’t a major concern considering volume levels were below average and less than the day before. In addition first level support levels are holding for now … Continue reading Indices Testing First Level Support<\/span>