Another strange day for internals, with six of the 10 most active NYSE stocks down on the day, a sign of some shaky leadership here. On the plus side, the Dow (first chart) is trying to break out above the upper trendline of a potential broadening top. That breakout at 9800 now needs to hold, and with the market back near overbought levels, that might prove difficult. 9750 and 9675-9686 are next supports below 9800, and the next major resistance is 10,008, the .618 retrace of the all-time high. The Nasdaq and S&P (second and third charts) are still some distance from testing their upper trendlines; call it 1955-1960 on the Nasdaq and 1060 on the S&P. 1070 on the S&P is the .382 retrace of the index’s all-time high. Supports to watch are 1930 and 1920 on the Nasdaq, and 1040-1042 on the S&P. In short, some potential for the bulls here, but the market will have to overcome the second overbought condition in a week to move much higher, something the market hasn’t been able to do since the unusually strong rally of March-June.
