On a day when just about everything went right for the bulls — low inflation, falling oil prices and solid earnings — breadth was negative and the Russell 2000 closed lower. Not the prettiest set-up for the bulls, and we wouldn’t be surprised to see the market pause to regroup here. The S&P (first chart below) closed at a new four-year high, but finished well off its highs for the day. Resistance is 1229 and 1233, and support is 1224 and 1216-1220. The Nasdaq (second chart) closed just below its early 2004 high of 2154, with 2164 and 2192, its 52-week high, above that. Support is 2148, 2144, 2135, 2128, 2113-2116 and 2100-2106. Forget multi-year highs — the Dow (third chart) was stopped at its June high of 10,656, but at least the index cleared its downtrend line. Resistance is 10,656-10,673, 10,700 and 10,750, and we’d like to see 10,575 hold as support.
