Technical Analysis: Rally Turns Choppy
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The market continues to defy gravity here, but with the rally turning choppy and internals eroding, the indexes could face a correction in the coming weeks. Still, with more positive inflation news likely in the next few days, the indexes could continue to chop higher for now, but this is also the time of year when sentiment can turn suddenly. The Nasdaq (first chart below) is facing a big level here at 2250-2255 a trendline that goes back to January 2004. Support on the index is 2223, 2213, 2207 and 2200. The S&P (second chart) faces tough resistance at 1324 and 1327, and 1311-1315 is first support. The Dow (third chart) stalled just above 11,600 today, with 11,640-11,670 and 11,722-11,750 above that. Support is 11,480-11,500, 11,430 and 11,400. Bonds (fourth chart) had a bit of a breakout today, but 4.82 or so looks a little tougher.