With the bond market closed and trading volume very low, it’s hard to draw much in the way of conclusions from today’s action. Stocks could continue to edge higher into Intel’s and Yahoo’s earnings reports tomorrow night, but after that, the fundamentals will drive action. We would note that the market remains in a seasonally weak period for the next 2-3 weeks. The Nasdaq (first chart below) put in something of a bullish harami candlestick pattern the last two days (a small doji inside a large red body), so more upside is possible for tomorrow, but the index won’t go far without hitting some big resistance levels, particularly that big gap from 1941-1949. First resistance level is 1931-1933, and 1925, 1918, 1910, 1900 and 1890 are support. The S&P 500 (second chart) faces tough resistance at 1130 and 1140-1142, and support is 1120, 1116, 1110 and 1107. The Dow (third chart) has major support at 10,040, 10,000, 9980 and 9960, and resistance is 10,100, 10,122 and 10,160.
