Technical Analysis: Stocks Turn Back Up
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Stocks turned up today, but not in time to save the Nasdaq (first chart below) from issuing a sell signal under Gerald Appel's Nasdaq/NYSE relative strength indicator (second chart). But with commercial futures traders continuing to get long the big S&P 500 contract, the market should have some breathing room here. The Nasdaq faces resistance at 2580 and 2595, and support is 2550 and 2532. The S&P (third chart) faces tough resistance at 1510 and 1514-1515, and support is 1500 and 1496. The Dow (fourth chart) faces resistance at 13,369, and support is 13,320 and 13,230. The bond market (fifth chart) didn't think today's inflation data was as bullish as stock traders did. Still range-bound there.