Technical Analysis: Dow Hangs On

We got the one test of the recent breakouts that we were expecting, and the Dow (first chart below) held up admirably today. The Dow had no overlap with its March 12 high of 12,350, as buyers stepped in at 12,367 today; that can spark additional buying when traders are forced to raise their bids. So far so good for the bulls. 12,511, 12,550 and 12,615 are resistance for the blue chips, and support is 12,400 and 12,350. The Nasdaq and S&P (second and third charts) didn’t come close to testing their breakout points today. The Nasdaq still faces tough resistance at 2467-2471, and support is 2444, 2436 and 2425, while the S&P faces resistance at 1440, 1445 and 1450, and support is 1430 and 1426. Bond yields (fourth chart) continue to whipsaw traders; below 4.55% and the trend may be down again.

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