Technical Analysis: The Broad List Breaks Out
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With new highs in the NYSE and its advance-decline line (first two charts below), can the rest of the market be far behind? A pretty solid technical picture there bodes well for the rest of the market. For the broad list, it seems the correction ended as quickly as it began. The Nasdaq (third chart) cleared 2471 today, setting up a test of 2492-2500. 2460 should now be solid first support, with 2450 and 2440 below that. The Dow (fourth chart) faces tough resistance at 12,600 and 12,680, and support is 12,500-12,511 and 12,450. The S&P (fifth chart) has room to run above 1450, with 1461 its post-2002 high, and 1437-1440 should now be solid support. Bond yields (sixth chart) had no follow-through today, suggesting the index may be overextended.