Technical Analysis: Techs Lag Behind
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We'll score today for the bulls: despite some pretty bad news, blue chips managed to end the day with gains. The one problem for the blue chips here is the short-term count: since the late November lows, we have three legs up interrupted by a sharp and flat correction it sure looks like five complete Elliott waves, suggesting at least one more leg down before the advance can resume. The S&P (first chart below) faces resistance at 1432, and support is 1420, 1414 and 1408. The Dow (second chart) has support at 12,400, 12,360 and 12,290. The Nasdaq (third chart) gave up any semblance of a bullish ascending triangle today and could be headed for 2390-2400 support. A move above 2440 would be a good sign for the bulls. Bond yields (fourth chart) continue to back up here. In short, blue chips continue to run, but they can't do so forever without support from techs and bonds.