Technical Analysis: Outside Day

An “outside day” for the Nasdaq (first chart below) today, trading both above and below yesterday’s trading range. Coming on the heels of a long rally, such volatility could set up a reversal. Time will tell. Also of concern is a potential head and shoulders top in the Nasdaq 100 (second chart) and bearish rising wedges in both indexes. All in all, a rare bearish set-up for the market over the last few years. Let’s see if the bulls can pull this one out. Resistance on the Nasdaq is 2328-2333, and 2295 is major support. The S&P (third chart) faces major resistance at 1295-1300, and support is 1282-1284 and 1275-1276. The Dow (fourth chart) has support at 10,960-11,000 and 10,915, and resistance is 11,100 and 11,160. Long bond yields (fifth chart) are nearing a 52-week high.

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