Given the disappointing results from Nokia and IBM, we’ll call today a victory for the bulls. It certainly could have been worse. NYSE internals continue to improve nicely, a big plus for the market. As we noted several times this month, poor internals are often a precursor to a decline; will strong internals be a precursor to a rally? The Nasdaq (first chart below) remains wobbly, but given the number of big names taken to the woodshed and the exchange’s improving internals today, we’d have to describe today’s action as positive. Let’s hope it continues next week. Resistance on the Nasdaq is 2004-2007, 2011-2015, 2020, 2031 and 2040, and support is 1989-1990, 1978-1982, 1960 and 1940. The Dow and S&P (charts two and three) managed to close above their respective 50-day moving averages today. The S&P faces resistance at 1138-1140 and 1145-1146, and support is 1128-1130, 1126 and 1120. The Dow has resistance at 10,500, 10,520-10,530 and 10,570, and support is 10,420, 10,376-10,390 and 10,322.
