Wednesday, July 22, 2009

NYSE At Resistance

While most stocks are behaving positively after earnings announcements, some key markets are approaching definite resistance levels: Dow Industrials, Dow Transports, SP500 and Wilshire 5000. The above chart shows the NYSE composite which is approaching both its rally high and median line resistance. While a significant selloff is unlikely at this point, a pullback to key moving averages and fib retracement levels would seem probable. It should be noted that the SP500 has yet to close above its June high, which speaks to the strength of the resistance and the likely outcome once it is broken.

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