Stocks aren’t going down after hitting resistance yesterday, so that’s a hopeful sign for more upside. The one negative we’d note is that Nasdaq underperformance (first chart below) is becoming an issue again, but a strong response to Friday’s jobs report would solve that problem. Sentiment is perhaps a little too bullish, witness this week’s 59.8/23.9 Investors Intelligence bull/bear ratio, but options behavior remains pretty constrained. The S&P (second chart) remains stalled at a rising resistance line here. 1417 and 1426 are resistance to the upside, and support is 1408, 1400, 1390 and 1387. The Nasdaq (third chart) faces resistance at 2455 and 2468, and support is 2434-2436 and 2427. The Dow (fourth chart) faces resistance at 12,335 and 12,355. Support is 12,275, 12,240 and 12,200. Long bond yields (fifth chart) have turned higher here.
