Getting Ready For A Bounce

The market is appearing to be setting up for a bounce to test recent broken support. The DJIA is attempting to move back above 10,160 and test the 10, 315 resistance level. The SP500 is gearing up to test the 1085 support turned resistance. If it breaks above the 1085, look for possible resistance test near 1100-1103. The tech heavy Nasdaq 100 found support at the 1740 level and is preparing to test the 1815 resistance. These market indices seem to indicate a short term rally could be in the offing. My overall bias still remains bearish, but if this dead cat bounce rally present some nice short term longs, I will not hesitate to trade them for a day or two. I will not be a seller until these indices break below recent low if the dead cat bounce does not occur. Here are the updated charts:

DJIA:



SPX:



NDX: