Technical Analysis: Blue Chips Test Resistance
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The best hope for a continued bounce can be found in the Dow and S&P (first two charts below), which are trying to put in a second leg up to their June rallies. If that's the case, the Dow could test the 11,250 level, while the S&P could reach 1287. The Dow has support at 11,000, 10,950 and 10,920, and first resistance is 11,120. The S&P faces tough resistance at 1264-1265, and support levels are 1251, 1245 and 1241. The Nasdaq (third chart) seems to be on its own timetable, making new lows while the blue chips consolidate. 2065 and 2090 are resistance, and 2050 is now an important first support level. At least the techs improved in relative strength today (fourth chart). Long bond yields (fifth chart) continue to hover around 5%.