Technical Analysis: Blue Chips Tire

The Dow (first chart below) has held up remarkably well at lofty levels, but it seemed to tire a bit today while strength in techs and small caps propped up the market. We’re wondering how much farther the blue chips can run in the face of exceptionally overbought readings, and 12,000 seems as good a place as any for a pause, whether that happens before or after the blue chips clear that level. Support on the Dow is 11,900, 11,880, 11,800 and 11,722-11,750. The S&P faces major resistance at 1376-1389. 1360, 1354 and 1338-1340 are support. The Nasdaq (third chart) is coming up on its post-2002 high of 2375, and 2325-2333 is the first strong support. Bond traders (fourth chart) continue to send yields higher; that could catch up with stocks at some point. Finally, Transports (fifth chart) also look like they’re tiring here despite low energy prices.