Technical Analysis: Internals Turn Funny Again

Another day with odd internals – breadth was even on the NYSE, new lows rose substantially, and the Russell 2000 lagged. We noted the same a week ago – right before the market dropped for 2-3 days. Will the market repeat the feat? If nothing else, the underpinnings for a broad-based advance are so far missing. A retracement to regroup would be a healthy thing for the market. The Nasdaq (first chart below) faces resistance at 2070, 2079 and 2088-2095, and support is 2060, 2050, and 2037-2040. The S&P (second chart) faces resistance at 1147-1148, 1150-1152 and 1157-1163, and support is 1138-1140 and 1134. The Dow (third chart) has resistance at 10,550-10,570, 10,630, 10,700 and 10,750, and support is 10,455, 10,420 and 10,400.

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