Technical Analysis: Resistance Holds Again
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Once again, the Dow (first chart below) was stopped shy of 11,000 today. That said, given the flat nature of the correction, it's possible the blue chips may yet surmount that level a flat resistance or support area stands a chance of being exhausted eventually. If the blue chips can clear that level, it will be interesting to see what happens to investor sentiment. The index closed right on an uptrend line, and support levels below that are 10,868, 10,800 and 10,700-10,750. The S&P (second chart) is another index sitting right on its October uptrend line. The index faces major resistance at 1270-1280, and any lower and 1250 and 1240-1246 could come into play. The Nasdaq (third chart) is trying to hold onto last week's major breakout; much lower and 2220 comes into view next, with 2200 below that. 2252, 2264 and 2269 are resistance. Bond yields (fourth chart) are starting to back up a little here; stocks will need better from bonds to continue to rally for long.