Technical Analysis: Dow Nears Historic High
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The Dow (first chart below) continues to be drawn to its all-time high of 11,722-11,750, and its ability to press that level in what has historically been the weakest month of the year is impressive. That said, internals have been unimpressive and the rally has been overlapping, with each new high overlapped on a subsequent pullback that's not usually a sign of lasting strength. But the trend remains up until proven otherwise. Critical support on the Dow is 11,480-11,520. The S&P (second chart) took out rising resistance today, another show of strength by the bulls. Next up is 1340-1342, and support is 1334, 1330 and 1326-1327. The Nasdaq (third chart) was the laggard today, ending the day at 2262 resistance. Support is 2253, 2250 and 2243. Bond yields (fourth chart) finally gave back a little today on rising consumer confidence.