As the Dow (first chart below) nears its all-time high of 11,722-11,750, the NYSE advance-decline line (second chart) remains stuck and the Nasdaq (third chart) is faring even worse. How long can a rally this selective last? One negative in that Dow chart is that -DI, or selling pressure, has completely dried up. When we saw that back in March, the index corrected nearly 300 points. Support on the Dow is 11,500 and 11,426. The Nasdaq has support at 2328-2333, 2325, 2318 and 2290-2300. Resistance is 2350-2354, 2362 and 2375-2380. The S&P (fourth chart) faces a band of resistance from 1325-1350, and 1322 and 1315-1318 are support. Long bond yields (fifth chart) are struggling here; what will tomorrow’s Fed statement bring?
