Technical Analysis: Techs Fall Behind
Page 1 of 1
The Nasdaq (first chart below) has become the laggard again, although not so much as to generate a sell signal under Gerald Appel's relative strength indicator (second chart). Also worth noting is the market's ability to find support when the Nasdaq:NYSE relative strength line bounces off its 10-week average, as it did today. Still, the techs need to get it in gear soon or they may yet generate a sell signal. On the plus side, the Nasdaq looks like a symmetrical triangle over the last two weeks; that consolidation should resolve to the upside. Resistance is 2360-2364 and 2375, and support is 2340, 2325 and 2310. The Dow and S&P (third and fourth charts) continue to be the indexes to watch for major support, at 12,000-12,025 and 11,840 on the Dow, and 1370 and 1352 on the S&P. The S&P faces major resistance at 1382-1389. Bond yields (fifth chart) remain stalled at major resistance.