Technical Analysis: Another Bernanke Bounce
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Another 90% upside day for the NYSE on a Bernanke speech; will this one stick better than the last one? More upside for this rally is certainly possible, but we wouldn't rule out one more leg lower at some point into the traditional autumn low. One thing is for sure: 10,700 is shaping up to be extremely strong support for the Dow (first chart below) and for the market in general here. Resistance is 11,040, 11,090 and 11,150, and support is 10,975, 10,940 and 10,900. The Nasdaq (second chart) faces resistance at 2090-2100, and support is 2065 and 2052. The S&P (third chart) faces resistance at 1263, 1265 and 1267-1268, and support is 1250, 1245 and 1240. Long bond yields (fourth chart) had quite a reversal today to resume their downtrend.