The Nasdaq (first chart below) continued its underperformance today with a new low for the year; will the rest of the indexes follow? On the plus side, the Nasdaq should have strong support at 2000-2025, but we remain in the weakest months of the four-year cycle until October. To the upside, the first resistance levels are 2065 and 2090-2100. The S&P (second and third charts) ended the day right on its August 2004 trendline. If that goes, the next support levels are 1235-1237 and 1232, and resistance is 1245-1250, 1256, 1260 and 1264. The Dow (fourth chart) gave up a couple of support levels today. The next levels to watch are 10,800 and 10,700, and resistance is 10,900, 10,936 and 11,000-11,040. Long bond yields (fifth chart) continue to benefit from flight to quality.
