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Technical Analysis: And Now for the Good News

The S&P's failure to set a new all-time high left the market open for sellers, who finally took control of the market today. But the good news for the bulls is that pre-holiday and end-of-the-month periods tend to be positive for stocks, which could give the S&P another crack at its all-time high of 1527.46-1552.87 over the next week or so. But this area remains a treacherous one for the bulls, as we saw today. Next support for the S&P (first chart below) is 1498-1500, while 1520-1525 looks like tough resistance. The Dow (second chart) put in a wide-ranging outside day today, a potential reversal sign. Support is 13,400-13,424, 13,350 and 13,270-13,300, and 13,500 is first resistance. The Nasdaq (third chart) was rejected yesterday at 2600 resistance. 2520-2530 is first support, with 2500-2510 below that, and 2555 is first resistance. The 10-year yield (fourth chart) hit our 4.9% target before reversing, while the 30-year yield (fifth chart) closed above 5% for the first time since last summer.