The Nasdaq and S&P (first two charts below) broke their downtrends today in strong fashion, and the Dow (third chart) is knocking on the door. Perhaps the most interesting thing about the rally is we had a very high-volume one-day reversal with no pullback to speak of at all — buyers haven’t been given much of a chance, which could continue to support the market for now. The Nasdaq closed right at 2576 resistance, with 2600 next, while support is 2550 and 2525-2530. The S&P faces next resistance at 1488, and support is 1472 and 1457-1461. Any move up by the Dow sets up a test of its 50-day average at 13,475, and support is 13,200-13,320. The ten-year yield (fourth chart) remains stuck in a holding pattern within its larger downtrend.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association