Technical Analysis: Still Stuck
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The market continues to look vulnerable to at least a brief pullback here, as Dow 14,000 and the S&P's March 2000 high of 1552.87 continue to give the bulls trouble. We'd like to see 1532-1540 hold on the S&P (first chart below) on any pullback, while 1556 has now stopped the index for three straight days. The Dow (second chart) needs to clear 14,000 with some conviction, while support is 13,880-13,900, 13,800 and 13,670-13,700. The Nasdaq (third chart) is heading into a major resistance zone here, starting at 2750-2800 and carrying through 3000, that should take some time to get through. Support can be found at 2693, 2675-2680, 2652-2663 and 2640. Not much new to say about the 10-year yield (fourth chart), which remains stalled between 4.9-5.0% and the 5.25% neutral zone.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association