Technical Analysis: Resistance Holds
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Today's rally failed at downtrend lines on the major indexes (see charts below). The set-up still favors the bulls, but buyers have to step up soon. Tomorrow's CPI will be the last good piece of inflation data for a while; let's hope it gives the bulls something to cheer about. Positives today include another high put/call ratio and the market's ability to survive a higher than expected producer price reading. The Nasdaq (first chart below) faces strong resistance at 1935-1943; if it can clear that, it could set up a test of 1969-1973 resistance. Support is 1920, 1914, 1910 and 1900. The S&P (second chart) faces tough resistance at 1100 and 1107, and support is 1087-1091 and 1075. The Dow (third chart) faces resistance at 10,048 and 10,108-10,125, and support is 10,000, 9970, 9932, 9900, 9852 and 9822.