Technical Analysis: Blue Chips Lead

Still waiting for treasury buyers to step in and send bond yields (first chart below) lower. 45.50 needs to hold on the 10-year yield, and a break of 44.40 would be a good start toward lower yields. Lower yields and stronger buying pressure in stocks are the only elements missing for a bottom here. The Dow (second chart) seems to be leading here — the first major index to test its August and September lows. The blue chips face major resistance at 10,410, and support is 10,290-10,300 and 10,240.The Nasdaq (third chart) is challenging its 200-day moving average at 2073, and 2093 is the next big level above that. 2051 is critical support. The S&P (fourth chart) faces major resistance at 1195 and 1199-1201, and support is 1185 and 1180.

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