Technical Analysis: Bulls Push On
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Not the prettiest action today, but the Dow, S&P and Nasdaq are all making progress here. Still, with some tough levels coming up in the next 1-3%, we could be in for a pause or pullback soon.
The Dow (first chart below) could run to 13,400 before it hits its next resistance level, while the S&P (second chart) faces very difficult resistance at 1433-1435 and the Nasdaq (third chart) between 2500 and 2550.
Support on the Dow is 13,000 and 12,750-12,850. On the S&P, it's at 1400-1406 and 1385, and on the Nasdaq at 2450 and 2400.
Sentiment remains a very long way from toppy, but we are starting to see a lot of coverage of the economy improving, so overhead resistance here could be a good place for a pause.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.