Technical Analysis: Techs Hit Headwinds
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A strange day for the markets: a near-perfect inflation report that delivered a big rally in bonds, but stocks had a mixed day. Is the good inflation news largely priced in at this point? If nothing else, bonds have suddenly become more attractive than stocks, if only for the moment. The Dow (first chart below) is nearing major resistance at 11,350-11,426 that stopped the index three times in 2000-2001. Support is now 11,200-11,227 and 11,150. The S&P (second chart) faces major resistance at 1316, the May 2001 high. Support is 1300-1303, 1295 and 1288-1290. The Nasdaq (third chart) stalled out at 2324, just shy of the major 2328-2333 resistance level. The next support levels are 2290-2293 and 2285. The Nasdaq 100 (fourth chart) didn't fare so well on its first test of 1700-1720. Finally, a big break for bond bulls today (fifth chart).