Technical Analysis: Blue Chips Take The Lead

The blue chips are taking the lead now, with the S&P 500 (first chart below) back at its yearly high (1163.09). Also on the plus side for the blue chips, the NYSE strung together back-to-back 80% upside volume days for the first time since October 2002. That said, the market is very overbought here and could use a breather. Support on the S&P is 1150 and 1140, and the next resistance level above 1163 is 1173-1175. The Nasdaq (second chart) continues to stall at 2025 resistance; if it can clear that, 2055 is the next big level. Support is 1992-2000, 1970-1975 and 1950-1954. The Nasdaq continues to suffer from a lack of upside volume — below 70% today. The Dow (third chart) was stopped at its downtrend line today; any move higher tomorrow would be a breakout. The next resistance levels are 10,390-10,400 and 10,487, and support is 10,250 and 10,220.