We are moving into a narrower trading range after spending all of the week of 9/15-19 with daily triple digit up and down moves.  This is an indication that more indecision is moving into the market.  The INDU is forming a symmetrical triangle chart pattern which usually is a precursor for an explosive move either up or down.  It’s apparent that the market is waiting on the bailout bill.  If the market views the final bill as positive news, we will pop higher.  There is relatively strong resistance and still fundamentally significant headwinds, so IMHO, if we have a move to the upside, I need to be convinced that it has sustainability.  The indication of a sustainable up move will be investor participation as reflected by increased volume especially at areas of resistance.  Look for the swing low of 10459 which occured on 9/18 to provide some support.  Resistance at 11150, 1135 and 11560.

See the INDU comments.  Support at 1200 and the swing low of 1133 which occurred on 9/18.  Fairly strong resistance at 1252, 1278 and 1319.

I am a little more bullish on the NASDAQ.  There was an impressive (almost) bullish engulfing candlestick pattern that formed Friday.  Support at the swing low of 2070 on 9/18.  Resistance at 2270, 2315 and 2320.  There was a “Falling Window” (gap down) that occured on 9/4 which provides strong resistance.  This index like the others is waiting for news on the bailout.  Stay tuned, it could be interesting.

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