The indexes continue to levitate here, and while that’s a positive, the rally has been choppy and is up against major resistance here and thus could be vulnerable to a correction. Plenty of news the next two days could help the indexes decide. The Nasdaq (first chart below) faces tough resistance at 2250-2260, while support on the index is 2223, 2216, 2207 and 2200. The S&P (second chart) is running up against a rising resistance line at its recovery high of 1327, while 1311-1315 is first support. The Dow (third chart) continues to stall at 11,600 today, with 11,640-11,670 and 11,722-11,750 above that. Support is 11,480-11,500 and 11,450. Bond yields (fourth chart) keep threatening, but they haven’t broken out yet. Still, after seeing a number of positive articles this weekend on falling energy prices, low inflation and rising stocks, we wonder if the trade isn’t due to unwind a bit.
