Technical Analysis: A Strange Day
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A strange day today. Despite the straight-line gains in the indexes off last month's lows, there's a lot of upheaval beneath the surface, particularly in the two days since the unemployment report. Decliners led advancers by an 18-15 margin on the NYSE today, and new lows climbed on both exchanges, unusual for a strong up day. Our guess is that investors are shying away from anything interest-rate sensitive; just take a look at mortgage-related issues like Redwood Trust
. The broader trend may be up, but it's looking like a selective one so far. The Nasdaq (first chart below) appears headed for the 2088-2095 resistance zone. Above that, 2115, 2128 and 2154 are resistance, and support is 2069, 2054-2057 and 2046. The S&P (second chart) faces resistance at 1157, 1160-1163 and 1173-1177, and support is 1140-1142 and 1135-1138. The Dow (third chart) has resistance at 10,600-10,650, and support is 10,500-10,520, 10,460 and 10,420.