Market Crash new support and resistance

Well with last weeks crash there is definitely a change in the support and resistance lines for the market. Lets take a look at where we are at now…

QQQQ - Support = 42 which is around the 200d ma / Resistance = 44 or the 50d ma
SPX - Support = 1380 (200d ma stronger at 1365)  /  Resistance = 1420
OEX - Support = 630 around the 200d ma /   Resistance = 650 weak (660 stronger)
DJ30 - Support = 12000 (200d ma around 11950) /  Resistance = 12500
RUT - Support = 770 (220d ma 760) / Resistance = 800 strong

So if you look at the charts the next solid line of support for all the indices is the 200d ma. If we break that on one of the big indices such as the DOW or the SPX, then a new bear trend will follow suit.

My opinion is that we will stay above the 200d ma and be neutral for awhile. With the increase in volatility new trades should be easier to find.

Next post I will continue the discussion on volatility.

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