Technically, the market looks like it put in a low last week, retested it with a higher low on Tuesday, and is now headed higher again. If the S&P (first chart below) can clear 1540, it may finally be headed for its all-time intraday high of 1552.87. We’d note that commercial futures traders continue to short the big S&P futures contract, another negative data point that could eventually prove to be a problem for the market. 1527, 1523-1525 and 1520 are support. First resistance for the Nasdaq (second chart) is 2640, and 2620 and 2600-2605 are support. Above 13,692-13,700 and the Dow (third chart) could have room to run. 13,640 is first support. The 10-year yield (fourth chart) continues to back off here. 5.1% is significant first support.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association
