Technical Analysis: Rally Hits Headwinds

The rally ran out of steam today, not surprising given the number of indexes facing major overhead resistance here.

The Dow (first chart below) stopped just shy of 11,731-11,750, its March low and 2000 peak. If the index can clear that level, 12,000 looks possible. Support is 11,558, 11,500, 11,400 and 11,300.

The S&P (second chart) stalled at 1292 resistance today, with 1304 and 1310 waiting above that. Support is 1276-1277, 1267, 1262, 1257, 1249, 1240 and 1234.

The Nasdaq (third chart) stalled at 2350 resistance today, but 2388 looks like a more important level, the bottom of the first leg down last month. 2300, 2270-2280 and 2250 are support.

The bank index (fourth chart) is also nearing major resistance at 73.22-75. A nice recovery, but a good place for a pause.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.

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