Technical Analysis: Blue Chips Take the Lead
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One caution sign appeared today despite the solid gains for blue chips, market internals even on the NYSE were decidedly weak. We'll see how the next few days pan out, but selective buying can kill a rally, particularly when the buying is concentrated in the safest issues. The Nasdaq (first chart below) seems to be having a little trouble at a rising resistance line and its five-year high of 2375. 2390-2400 is the next resistance level above that, and 2350 and 2328-2333 are support. The Dow (second chart) is pushing its spike highs from 2000 and 2001 at 11,350-11,426. On the monthly chart, 11,200-11,250 looks like an important level to hold. The S&P (third chart) is pushing its May 2001 high at 1316, and support is 1300-1303. Long bond yields (fourth chart) continue to hold above 5%.