Technical Analysis: Rally Tires
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The major indexes continue to stall here without taking out much in the way of significant resistance, raising the odds that we see a near-term pullback. The Dow (first chart below) can't begin to challenge the 13,200-13,300 resistance zone. Support remains 13,000 and 12,850-12,900. The S&P (second chart) can't get back above its 200-day average at 1455, and 1469 looks even tougher. Support is 1440, 1427-1432 and 1416. The Nasdaq (third chart) has sellers waiting at 2531 and 2560, and support is 2500, 2487 and 2460. Ten-year yields (fourth chart) made a marginal new low today, but that index doesn't seem to have much momentum at the moment either.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association