Technical Analysis: Internals Erode
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On a day when just about everything went right for the bulls low inflation, falling oil prices and solid earnings breadth was negative and the Russell 2000 closed lower. Not the prettiest set-up for the bulls, and we wouldn't be surprised to see the market pause to regroup here. The S&P (first chart below) closed at a new four-year high, but finished well off its highs for the day. Resistance is 1229 and 1233, and support is 1224 and 1216-1220. The Nasdaq (second chart) closed just below its early 2004 high of 2154, with 2164 and 2192, its 52-week high, above that. Support is 2148, 2144, 2135, 2128, 2113-2116 and 2100-2106. Forget multi-year highs the Dow (third chart) was stopped at its June high of 10,656, but at least the index cleared its downtrend line. Resistance is 10,656-10,673, 10,700 and 10,750, and we'd like to see 10,575 hold as support.