Technical Analysis: Momentum Slows
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Take a look at the Dow chart (first chart below) a straight-line advance over the last week, but each successive day has seen a smaller gain and range than the day before. That suggests that the market is losing momentum here, and with selling pressure (the -DI indicator at the bottom of the chart) all but dried up, it appears that the index is getting extended here and could be due for a pullback. Resistance is 11,300 and 11,350-11,426, and support is 11,250, 11,200 and 11,160. The S&P (second chart) has support at 1303, 1300, 1295 and 1288-1290, and resistance is 1310 and 1316. The Nasdaq (third chart) faces resistance at 2321, 2324 and 2328-2333, and support is 2300 and 2287-2293. Long bond yields (fourth chart) remain on the right side of that line.