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Technical Analysis: Stocks Stay Stuck

The market is winding up pretty tight here in anticipation of its next move. Sentiment hasn't gotten too frothy yet, but the market is very overbought here and could use a breather, with selling pressure (-DI) nowhere to be found on the Dow (first chart below). The Dow is trapped between 11,800 and 11,880, with 11,830 an important first support. The S&P (second chart) is stuck between 1344 and 1354. The Nasdaq (third chart) may be "wedging out" here, with 2325 and 2308 levels to watch in that pattern. The one index that made a clear statement today was the bond market (fourth chart), with the 10-year yield breaking its main downtrend line today. In the last two trading sessions, the bond market has gone from pricing in three rate cuts to two.