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Technical Analysis: A Start

An okay start today, but we're still waiting for an all-clear signal after last week's panic selling, a 90% upside day that comes when sellers have been washed out and buyers step in. Until we get that signal, the market will likely be subject to bouts of volatility as it wrestles with the S&P 500's all-time high. And it's the S&P (first chart below) that is the ugliest chart here, overlapping its February peak of 1461.57 on Friday and remaining below the bottom of its three-month trading range at 1480-1491, which remains an important first hurdle for the index. The Nasdaq (second chart) has first support at 2565, and resistance is 2592, 2600, 2609, 2618 and 2632. The Dow (third chart) has support at 13,310 and 13,250, and resistance is 13,400, 13,500-13,520, 13,575 and 13,640. Bond yields (fourth chart) have found support at their 200-day average, but they have a long way to go to make a dent in the downtrend.

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