SUPPORT LEVELS FOR MAJOR STOCK INDEXES
DOW SUPPORT LEVELS... I've been asked to show where underlying support levels are located for the major stock indexes. I'm using daily bars and point & figure charts to identify where the support levels are found. Chart 1 shows the 50-day average for the Dow at 10521. That's the first level of support. Bar chart support is seen along the recent lows at 10417. The p&f chart shows Dow support at 10450.
Chart 1
Chart 2
S&P 500 SUPPORT... The S&P 500 is finding inital support at its 50-day moving average (1181). Underlying bar chart support ranges from 1173 to 1167. Its point & figure chart shows initial support at 1175 and 1170.
Chart 3
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NASDAQ 100 SUPPORT ... Judging support for the Nasdaq 100 is a little more difficult. That's because the $NDX has already fallen below its 50-day average (1573) and its December low at 1575. But there's still the possibility of trendline support. The rising green line drawn under the August/ September/October lows sits near 1550. That will be an important test for the NDX. The point & figure chart shows that initial support has already been broken. Next potential support on the p&f chart is also at 1550.
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Chart 6
