Technical Analysis: Indexes Break Uptrends

The indexes all broke short-term uptrends today, a near-term negative for stocks. The Nasdaq (first chart below) looks like the weakest of the major indexes, having twice overlapped the first wave up off the January low. 2030-2040 is the next support zone, and resistance is 2060 and 2080-2085. The S&P (second chart) took out 1196-1200 support today, but the index wouldn’t overlap its first wave up until 1177.5. The index closed right on its 50-day average, and 1185 is also support. Resistance is 1196-1200 and 1205. The Dow (third chart) has support at 10,612 and 10,532, and resistance is 10,700 and 10,750.

Finally, a look at S&P 500 performance since 1950 following six interest rate increases by the Federal Reserve, courtesy of Chart of the Day ( Stocks could face tough going over the next year or so if the historical pattern holds.

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