Technical Analysis: Techs Hit Headwinds
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The Nasdaq (first chart below) continues to frustrate, failing to take out 2471 resistance today. Until the Nasdaq can demonstrate some relative strength, blue chips appear to be the better bet. Support for the techs is 2452-2458. The S&P (second chart) is nearing resistance at 1450 or so here. The index has put in bullish "three white soldiers" candlesticks the last three days, but if it can't bust up out of the three-month channel it's been in, gains will continue to be steady but unspectacular. Support is 1441 and 1435. The Dow (third chart) is in the same position as the S&P, with a potentially tough resistance level at about 12,690 for tomorrow. Support should now be 12,614. The 10-year yield (fourth chart) seems to have reversed back up on a volatile day, while the Transports (fifth chart) are tantalizingly close to giving Dow Theorists a (belated) reason to celebrate.