Technical Analysis: Tug of War
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Bulls and bears continue to do battle here, with blue chips pulling to the upside and tech stocks to the downside. We'll take it as a positive that the indexes haven't moved sharply lower yet, but they need to move higher soon or risk a correction. The Dow (first chart below) had an "inside day" today, completely within yesterday's trading range, which is a sign of hesitation after the index's recent run-up. We'll use yesterday's range of 12,804-12,839 for signs of a breakout. The S&P (second chart) faces resistance at 1478, and support is 1458-1461. The Nasdaq (third chart) has important support at 2490, and resistance is 2512, 2520 and 2531. Bond yields (fourth chart) reversed at their 50-day average today, but face tough going to the upside.