April is so far living up to its reputation as a pretty good month for stocks. If the pattern holds, we could face a dip into the middle of the month and then a solid last couple of weeks to the month. Certainly today’s hesitation by traders could be the start of a pause. The Nasdaq (first two charts below) continues its four-month underperformance. 2471 remains a tough level for the techs, with 2500 above that. 2460 and 2440 are support levels. The Dow (third chart) faces tough resistance at 12,600 and 12,670, and support is 12,500, 12,450 and 12,420. Above 1450 and the S&P (fourth chart) has a shot at a new post-2002 high. Support is 1440 and 1435. Bond yields (fifth chart) skyrocketed today, but the 200-day average could prove tough. FOMC minutes and PPI data are on tap for later in the week.
