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Technical Analysis: Indexes Extend Gains

It's hard to argue with the bullish case between now and January 3, but the indexes sure are getting extended here, with no pullback to speak of over the last two months. The surprise lately is that the Nasdaq (first chart below) is lagging, while the Dow (second chart) is leading. Perhaps we are witnessing rotation into blue chips for the first time in a while. The Nasdaq has support at 2150, 2145 and 2140, and resistance is 2163-2165, 2171 and 2180. The Dow looks good, but it faces major resistance in the 10,800-11,000 range. Support is 10,750, 10,700 and 10,640-10,650. The S&P 500 (third chart) has major support at 1200, and 1215 could be tough resistance.