Technical Analysis: Narrow Range

The market is getting wound up tight here, with three days in the same narrow range. Another near miss for the Dow (first chart below) at its all-time high of 11,722-11,750 today, but first-of-the-month inflows on Monday could give the index another shot. To the downside, 11,660 is shaping up to be important short-term support, with 11,630 and 11,570-11,590 below that. On the plus side, sentiment doesn’t seem to be getting too giddy with the Dow at such lofty levels; check out today’s closing ISE sentiment reading. On the other hand, there sure seems to be a lot of sellers waiting to cash out here, so it may take some time to break through. October may yet turn out to be a time for consolidation or correction. The S&P (second chart) is range-bound between 1333-1335 and 1340. The Nasdaq (third chart) is stalled between 2273 and 2253. Bond yields (fourth chart) are starting to look more and more like a reversal here.