Technical Analysis: Blue Chips Pause

Not much sign of weakness at all despite an extremely extended market, although the chips and financials were a little weak today; they can be leading sectors. The Dow (first chart below) continues to look as extended as its has at anytime this year. The round numbers of 11,900 and 12,000 could be cause for a pause. To the downside, 11,780-11,820, 11,722-11,750 and 11,640 are support. The S&P (second chart) faces resistance at 1361 and 1376-1389, and 1348-1350, 1338-1340 and 1327 are support. The Nasdaq (third chart) cleared more resistance levels today and could be headed for 2325-2333 next. Support is 2300, 2287-2293 and 2275. Bond yields (fourth chart) look range-bound between 4.5% and 4.66%. We’ll see if tomorrow’s jobs report can change that.

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