Most stocks fell on the NYSE today, but that didn’t stop the bulls from throwing another party. We need a monthly chart to see where the S&P 500 (first chart below) could run into resistance next. Those levels are 1173-1177 and 1190-1200. Support is 1160-1163, 1150 and 1140-1142. 2055 is the next major resistance level on the Nasdaq (second chart), and support is 2020-2025 and 1992-2000. The Dow (third chart) was stopped at 10,400 resistance today, getting as high as 10,416. 10,487-10,500 is the next resistance level above that, and support is 10,300.
Finally, one last word on the back-to-back 80% upside days recorded by the NYSE this week: Paul Desmond of Lowry’s Reports, whose award-winning work defined the subject, had this to say today: “Back-to-back 80% upside days are relatively common during the dynamic accumulation stage of a bull market. We will probably see a lot of these as many previously skeptical investors are rushing back into stocks. … Our last buy signal was in May ’04, and even that was a secondary signal within the bull market that began in Mar ’03.”
