While like I was expecting yesterday, the support held in all three major indexes. Upon looking at these closer, i noticed an interesting little pattern forming up on the 30 minute chart. Ill illustrate it on the Dow because it is easiest to see there. However, the same pattern is present in both the S&P500 and the NASQDAQ. Its the classic inverted head-and-shoulders pattern. I highlighted in thick blue where the neckline is at, and i highlighted the shoulders and head in yellow. Based on this set up i would expect the Dow to go up about 120 points from the break out point above the neckline. We got there upon reaching the high during todays move, but then started to pull back a little. Based on technical analysis, I am seeing the strongest support at about 7930 and the strongest resistance at about 8230. Since momentum is up for the moment, i see the Dow going and testing the resistance line.

In the S&P500 and the NASDAQ, I am also seeing upward momentum carrying through for the one to two days. In the S&P, weak resistance is present at 1880 with stronger resistance at 1910 (coincides with diagonal resistance or the upper resistance in a longer term triangle formation). In the NASDAQ there is some weak resistance at about 1560 (the high on 1/28), and stronger resistance at 1590, which just so happens to coincide with the diagonal resistance of a longer term triangle formation (see some of my older psts to view this triangle). Well see what happens when it gets there, but for now I remain neutral to bullish.