Technical Analysis: Winding Up
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Stocks have remained range-bound for three weeks now, and whichever way the current trading ranges break, they should be good for a big move. We'll give the bulls the edge here, because the pattern of rally and then consolidation suggests that the indexes are winding up for a move higher.
The S&P 500 (first chart below) faces resistance at 1362, 1370-1380 and 1395-1406, and support is 1327 and 1310.
The Dow (second chart) faces resistance at 12,450-12,500 and 12,750, and support is 12,160 and 12,040.
The Nasdaq (third chart) is the weakest of the three major indexes, nearly setting a new closing low today. Support is 2252 and 2200-2221, and upside hurdles are 2350 and 2387-2419.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.