Technical Analysis: Breakout Doesn’t Get Very Far

Stocks sure don’t look too impressive since last Friday’s big gap up. The Nasdaq and S&P (first two charts below) gapped over their main downtrend lines today only to fall back below. About the only positive to note there is that sellers couldn’t make much of those breakout failures. The Nasdaq faces resistance at 2576, and support is 2525-2530. The S&P faces sellers at 1472 and 1488, and support is 1456 and 1440. The Dow (third chart) faces resistance at 13,300 and 13,400, and first support is 13,180-13,200. The ten-year yield (fourth chart) isn’t making much progress either.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association