Technical Analysis: Dow, Nasdaq Push Some Big Levels
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The Nasdaq and Dow (first two charts below) are pushing some major downtrend lines here. Can they get over those hurdles without the support of the bond market (third chart)? While bonds haven't been giving stocks much help the last couple of months, we should note that commercial futures traders are even more bullish on bonds than they are on stocks. The market is set up for a strong rally, but don't be surprised if it takes a while for all the pieces to fall into place. Still, the strength in the indexes despite the lack of support from bonds is impressive. The Nasdaq pushed through quite a bit of resistance today to end the day at its main downtrend line. If it can head higher, 2165 and 2185 are big levels. 2125-2132 is major support. The Dow faces resistance between here and 10,500, and support is 10,450, 10,430, 10,400 and 10,350. The S&P (fourth chart) faces major resistance just under 1220, and support is 1209, 1205 and 1200.