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Technical Analysis: Reversal

A good start for the bulls today, but we want to see how they fare in the days ahead. Certainly the insane level of puts is supporting the market here. If stocks can put in another 90% upside volume day similar to last week in the next few days, that would be additional evidence that the lows are in. The inflation reports the next two days are shaping up to be big ones. The Nasdaq (first chart below) would put in a nice little breakout on a gap up above 2375 tomorrow, although 2390-2405 remains a tough level to beat. Support is 2350, 2340, 2330 and 2325. The Dow (second chart) faces resistance at 12,200 and 12,250, and support is 12,100, 12,040, 12,000 and 11,940. The S&P (third chart) faces resistance at 1390 and 1395-1400, and support is 1380, 1374, 1364, 1360 and 1350. Treasury yields (fourth chart) had their own reversal today, and are moving in tandem with stocks lately in a flight-to-quality trade.