Technical Analysis: Rally Pauses

The indexes paused at resistance today; so is it a double-top, or just a breather? At the highs today, the market was as overbought on an intraday basis as it was oversold last week. Still, the market could make another attempt at the highs after a rest. Internals were bullish today – new highs actually improved today – but the equity put-call ratio is getting close to the .45 danger zone again. The S&P (first chart) is once again struggling at 1033 resistance. If it can clear that, 1051 could be next. Support is 1020-1022 and 1015. The Nasdaq (charts two and three) stalled at an old uptrend line today. 1900-1950 is a major resistance zone, and 1876, 1860 and 1840 are support. The Dow (chart four) has resistance at 9610 and 9700-9800, and support at 9500, 9450 and 9352-9361. IBM (fifth chart) cleared 90.41 resistance; can it hold? The banks (sixth chart) are also trying to break out above 880-882 resistance.

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