Technical Analysis: Pullback
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A tough day for the bulls today, and the market will be vulnerable to more like it until it can push through the S&P's 2000 peak of 1527.46-1552.87 with some conviction. On the plus side, the Nasdaq's outperformance (first two charts below) has it nearing a buy signal, and we even got a nice little spike in equity put buying today (third chart), hopeful signs that the pullback won't be too deep. Support on the Nasdaq is 2610, 2600, 2595, 2587, 2581 and 2570, and resistance is 2614, 2618 and 2626. The S&P (fourth chart) has important support at 1525-1527. The Dow (fifth chart) has important support at 13,500, 13,450 and 13,350, and resistance is 13,720. The 10-year yield (sixth chart) continues to push 5% despite looking a little extended.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association