Technical Analysis: Momentum Slows

The Dow (first chart below) has led at the expense of the broader market the last two days, edging higher as other indexes have lagged and internals have eroded. That kind of hesitance and flight to quality leaves the market vulnerable to a pullback. 12,860 is first resistance on the Dow, and support is 12,700-12,720, 12,650 and 12,600. The S&P (second chart) faces resistance at 1478, and support is 1461 and 1453-1455. The Nasdaq (third chart) faces resistance at 2520 and 2531, and 2500, 2492 and 2480 are support. Bond yields (fourth chart) broke their uptrend today. Not much on the economic agenda until next week’s GDP report, which should be good news for bond bulls.

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