Today produced some uninspiring candlesticks on a retest of last week’s high-volume highs. However, we’d like to have a share of Berkshire Hathawayfor every ugly candlestick that the market has been able to overcome in this rally. The only thing that makes these different is that they come on a retest of near-record volume highs. If the market wants to correct, this isn’t a bad set-up. The Dow and S&P (first two charts below) have trendlines just beneath today’s lows; that makes 9116 and 991 important first supports. Resistance is 9262 on the Dow and 1008 on the S&P. The Nasdaq (third chart) has resistance at 1670, 1680-1700, and support at 1630. A gap down below 1647 that doesn’t fill could mark a reversal.
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