A nice start to the rally today, but it comes with a big caveat: be careful out there. The rally has become very selective, witness the Nasdaq’s paltry 72% upside volume today; we prefer to see strong up days accompanied by 80% upside volume, which only the NYSE delivered today. That said, we’d have to call just about everything else today a positive. The Nasdaq (first chart below) closed beneath important resistance in the 2038-2044 range, and 2060, 2079 and 2088-2095 are also tough levels. Support is 2020, 2010 and 1996-2000. The S&P (second chart) faces tough resistance at 1143, and 1150, 1157, and 1160-1163 are above that. Support is 1133 and 1126. The Dow (third chart) has resistance at 10,500 and 10,570, and support is 10,433, 10400 and 10,332.
