Technical Analysis: Choppy Rally
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The Dow and S&P (first two charts below) continue to approach the top of a two-month trading range in very uninspiring fashion. They could set new highs here, but they'll be vulnerable to a pullback unless they can do so convincingly. The Dow faces resistance at 13,692-13,700, and support is 13,570 and 13,500. The S&P faces resistance at 1540 and its all-time high of 1552.87, and support is 1524 and 1514. Looking at a longer-term picture, the Nasdaq (third chart) looks like 2680-2700 could be tough resistance, while 2630-2640 should now be solid support. The 10-year yield (fourth chart) continues to pause around the 5.25% neutral zone.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association