The biggest question about today is whether the heavy selling marks a short-term reaction to the Fed or the start of a bigger correction. We’re going to watch the Nasdaq (first chart below) for clues on that one. 2240-2245 is critical support on the Nasdaq, and 2300 looks like important resistance on the weekly chart. For the Dow (second chart), 11,350-11,426 is important support, and resistance is 11,600 and the index’s all-time high of 11,722-11,750. The S&P (third chart) has support at 1300-1303 and 1295-1296, and resistance is 1316, 1322 and 1327. The NYSE advance-decline line (fourth chart) remains a problem for the market, failing to follow the Dow, S&P and NYSE to new recovery highs. Rising long bond yields (fifth chart) finally caught up to the stock market, but they don’t seem to be going anywhere in a hurry here.
