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Market Technical Levels

With markets recording new all-time highs on the backdrop of the expectation of the approval of a new stimulus package we have updated technical levels for the S&P 500 Index (SPXX), the Dow Jones Industrial Average (INDU), and the Nasdaq Composite Index (COMPQ). Favorable seasonality factors as well as year-end window dressing activities will likely lead to higher prices in key stock market indexes toward the end of the year and possibly into early next year. However, the rally will lead to an overbought market condition prompting another consolidation next year.


Attached below is a summary of the key technical support and resistance levels for SPX, INDU, and COMPQ:


S&P 500 Index (SPX – 3,722.48)


Resistance 1 = 3,921-3,967 (top of Dec 2018 uptrend channel and 3-mo breakout target)

Resistance 2 = 4,595 (V-pattern breakout target)


Support 1 = 3,542.5-3,588 (Nov breakout and 50-day ma)

Support 2 = 3,393.5 (V-pattern breakout)

Support 3 = 3,186.5-3,239 (200-day ma, Sep/Oct 2020 lows, and bottom of triangle)



Dow Jones Industrial Average (INDU – 30,303.37)


Resistance 1 = 31,319 (top of Jun 2020 and 2018 uptrend channels)

Resistance 2 = 32,255 (3-month triangle breakout target)

Resistance 3 = 40,923.5 (V-pattern breakout target)


Support 1 = 28,993-29,568.5 (11/9/20 V-pattern breakout and 50-day ma)

Support 2 = 28,432-28,433 (extension of triangle breakout and bottom of 11/9 gap-up)

Support 3 = 26,144-26,619 (bottom of 2018 channel, bottom of triangle, and 200-day ma)


Nasdaq Composite Index (COMPQ – 12,764.75)

Resistance 1 = 13,045-13,156 (V-pattern breakout target and top of Dec 2018 uptrend channel)

Resistance 2 = 13,629-13,697 (3-month triangle breakout target)


Support 1 = 12,074-12,108 (11/25/20 breakout)

Support 2 = 11,869 (50-day ma)

Support 3 = 11,214-11,663 (11/4/20 gap-up and bottom of triangle)

Support 4 = 10,519.5-10,775 (9/21/20 low and bottom of Dec 2018 channel)

Support 5 = 10,287 (200-day ma)

Support 6 = 9,838.37 (V-pattern breakout)



Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

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