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Technical Analysis: Tepid Bounce

Yesterday's intense selling raised hopes that sellers around the S&P 500's all-time high may finally be capitulating, but the bulls failed to capitalize today, suggesting that we may see more selling in the near term unless buyers can drive the market forcefully higher. The good news is that monthly inflows begin next week, and with any luck, stellar results from the likes of Apple and Amazon can prop up the market in the meantime. The Nasdaq (first chart below) held support nicely today. That uptrend line will be at 2630 tomorrow, and 2675-2680 is important resistance. The S&P (second chart) has support at 1500 and 1482-1493, and resistance is 1520-1524, 1527 and 1530-1534. The Dow (third chart) didn't quite make it all the way to 13,650 support today. 13,925 looks like an important level to the upside. Bond bulls (fourth chart) are putting on quite a show here; at some point that will benefit stocks.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association