Technical Analysis: Rally Gets a Little Wobbly
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Today's weakness began with a big sell-off in the bond market, never the best of signs. The Nasdaq (first chart below) put in something of an "evening star" top the last few days. Support is 2138-2140, 2132-2135, 2125-2128 and 2120, and resistance is 2162-2165 and 2175. The S&P 500 (second chart) is so far consolidating above the important 1200 level. Resistance is 1207-1210, and support is 1197-1200 and 1190-1192. The Dow (third chart) faces resistance at 10,727 and 10,753, and support is 10,700, 10,670 10,640-10,650 and 10,600. A number of sentiment indicators are getting pretty frothy, but the market remains in a seasonally strong period for the next six weeks. A pullback over the next week or so could do the bulls some good.