Technical Analysis: Tech Stocks Get No Love
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Even when the market goes up, the Nasdaq (first two charts below) manages to fall even further behind the blue chips. It's been a tough couple of months for tech investors. The big question after today is whether the lows have been seen for this pullback. Our answer is a qualified "likely" but we want to see more life out of the tech sector to confirm it. In any event, pre-holiday trading will likely extend today's gains in the next few days. 2471 and 2490 are resistance for the Nasdaq, and support should now be 2440-2450. The S&P (third chart) turned up before testing its November channel line, a sign of strength, since buyers had to raise their bids to do that. 1440 is first support on the S&P, and resistance is 1446 and 1453. The Dow (fourth chart) was the strongest index today and if you bought our picks from late October, you had an even better day. That simple strategy is up 12% since Oct. 30, compared to a 4% gain for the Dow. While it's easy to confuse a bull market with genius, perhaps outperforming the market is just that simple. 12,700 and 12,750 are next resistance for the Dow, and first support is 12,607. 10-year yields (fourth chart) are pointed back up for now, but they face a whole lot of resistance here. Retail sales and PPI data in the next few days should be interesting.