Investors continue to show plenty of skepticism here, with another day near 52-week lows in the ISE sentiment index. The market may still have a retest of the lows ahead of it, but a good three-wave advance could occur first, which would bring the indexes to 1418 on the S&P and 12,386 on the Dow; above that and the indexes may be pointed up again. The Nasdaq (first chart below) faces major resistance at 1403-1405. Any move lower would break a small uptrend line tomorrow, with 2372 and 2361 the next support levels down. The Dow (second chart) needs to clear 12,303 to have a shot at 12,353-12,386. 12,193-12,200 is important support. The S&P (third chart) faces resistance at 1408-1410, 1416 and 1418, and 1390 is important support. Treasury yields (fourth chart) look like they’re poised for another move lower, but a move above 4.53% could catch traders looking the wrong way.
