Itâ€™s been a rocky ride thus far for the major stock market indices in 2015. JustÂ 3 weeks ago I wroteÂ about the resistance levelsÂ for the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT). I purposely did that post at that particular time because all 4 major stock market indices were at what I deemed â€œmake or breakâ€ levels. Simply put, they were all at resistance levels that would either push them downÂ or they would break out above and continue upward in thisÂ raging bull market that started in early 2009.
At that time, using my Fibonacci method, these were the resistance levels I was watching (again, those levels can be seen in my post from December 31st).
- DJIA Â Res = 17991.19. Â Â Â High = 18103.45
- COMPQ Res = 4810.86. Â High = 4814.95
- SPX Res = 2079.47. Â Â Â Â Â Â High = 2093.55
- RUT Res = 1213.55. Â Â Â Â Â Â High = 1220.81
Now, let’s check back in on the four major market indices and see if they broke out or pulled back at the resistance levels, starting with the Dow Jones Industrial Average (DJIA).
In the 1 year chart below, you’ll see that the Dow has not made a new high and has pulled back (4.75%). A technical correction of (10%) would be at 16293.
Dow Jones Industrial Average 1 Year, DailyÂ chart
In the 1 year chart below, you’ll see the NASDAQ has not made a new high and has pulled back (5.23%). A technical correction of (10%) would be at 4333.45.
NASDAQ Composite 1 Year Chart
In the 1 year chart below, you’ll see the S&P 500Â has not made a new high and has pulled back (5.03%). A technical correction of (10%) would be at 1883.99.
S&P 500 Index 1 Year, DailyÂ chart
And last, but certainly not least, the Russell 2000 has made a new high of 1221.44, a minuteÂ increase of only +0.05% above the previous high.Â Â A technical correction of (10%) would be at 1099.2.
Russell 2000 Index 1 Year, Daily Chart
If the market continues to pull back, watch for support at these (10%) correction levels as they will be high probability support numbers. And by the same token, if the market starts a march forward, the previous resistance levels will apply as well.
Thanks for reading and always use a stop !
This post originally appeared on See It Market.