Technical Analysis: Bulls Show Resilience
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Stocks have given back little of last week's stellar run-up, a good sign for the bulls so far. The cycles remain negative for another seven to eight weeks, but after that, they begin to turn positive. So far, it's shaping up to be the best mid-term year of the presidential cycle since 1986, but we enter the weakest month of the year in another two weeks. The Nasdaq (first chart below) has resistance at 2160, 2170 and 2190, and support is 2140 and 2115-2125. The S&P (second chart) faces resistance at 1303, 1310, 1319 and 1325, and support is 1291-1293 and 1281. The Dow (third chart) faces resistance at 11,380, 11,400, 11,426, 11,460 and 11,500, and support is 11,330, 11,290, 11,250 and 11,200. Bond yields (fourth chart) have also had an amazing run, but 4.8 should prove to be a tough level.