Technical Analysis: Wall Street Unfazed by Gridlock
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The stronger than expected showing by Democrats didn't dent the market for long today, a big show of strength by stock market bulls, but now we need to see follow-through buying. We'll see how quickly sentiment turns bullish now that the market has nothing left to worry about, but the trend remains up until proven otherwise. The Nasdaq (first chart below) is getting halted at the top of a broadening pattern here. Note the nice save by the techs on their main uptrend line today; nice constructive action after regaining that line two days ago. First resistance is 2395, and support is 2376-2377 and 2365. The S&P (second chart) didn't come close to its main trendline today, which will be at 1374 for tomorrow, with first support at 1383. 1389 is giving the big caps some trouble to the upside. The Dow (third chart) is struggling a little at 12,200, and support is 12,157, 12,100, 12,060 and 12,000. Bond yields (fourth chart) continue to drift lower here, with no follow-through as yet to Friday's big up day.