Technical Analysis: Bulls Pass Their First Test
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The market's resilience today was a big win for the bulls, not bad for a market that has shown little evidence of a major bottom.
If the S&P (first chart below) can head higher from here, 1292 and 1304 will be big tests. Support is 1267, 1257, 1248, 1240 and 1234.
The Dow (second chart) may be ready for a test of the critical 11,634-11,750 resistance level. 11,400 is important support.
The Nasdaq (third chart) has become the laggard here, failing to follow its blue chip counterparts to a higher high as money rotates into financials. 2320, 2350 and 2388 are resistance, and 2275-2280 is first support.
Speaking of financials, quite a run by the bank index (fourth chart), up 45% in six trading days, but major resistance is coming up.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.