Technical Analysis: A Familiar Pattern

Despite their best week in months, buyers didn’t quite have the strength to change the technical picture, as the Dow and S&P (first two charts below) remained within the rising channels that have dominated trading since November. For Tuesday, resistance is 1461 on the S&P and 12,800 on the Dow, and first supports are 1450 on the S&P and 12,700 on the Dow. The indexes could continue to test those upper trendlines for a few more days, but if they can’t clear them, a pullback is likely. The Nasdaq (third chart) faces resistance at 2500-2509, and support is 2490 and 2481. Bond yields (fourth chart) continue to surprise as much to the downside as they did to the upside; no rest for traders there.

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