Technical Analysis: A Big Test for Techs
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The Nasdaq (first chart below) is in a precarious position here, threatening both its recent breakout at 2471 and buy signal (second chart). Much depends on the CPI report tomorrow morning and IBM's earnings tomorrow night. On the sentiment front, today's Investors Intelligence numbers delivered a big surprise, with bulls dropping five full points to 50.4% and bears climbing more than a point to 22.1%. On its face, that kind of skepticism appears positive for stocks. The Dow (third chart) is running into resistance at today's high, at about 10,625 for tomorrow. Support is 12,466-12,500. The S&P (fourth chart) faces similar resistance at about 1438, and 1426 is an important first support level. Bond traders (fifth chart) continue to take a beating, but yields aren't too far from major resistance levels here.