Technical Analysis: Stocks Stall Out
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With the Nasdaq underperforming and the market turning choppy here, stocks may be set up to sell the news on the Fed meeting tomorrow, which would certainly be surprising, since there's little doubt about the outcome: no change in rates and the Fed remains on guard against inflation. The market appears to be a little disappointed that there's no rate cut coming in the near future, which may be the reason for the choppiness here. The Nasdaq (first chart below) is stuck in a very narrow range here: about 2452 to the upside, and 2430 to the downside. A break of either level should be worth a good move. The S&P (second chart) faces major resistance at 1421, and support is 1412, 1403-1404, 1400 and 1396. The Dow (third chart) remains stuck at 12,355-12,361 resistance, and support is 12,270, 12,240 and 12,200. Bond yields (fourth chart) are trying to recover from Friday's damage; tough talk on inflation could be good for bonds tomorrow.