Good old-fashioned moving average resistance appears to be stalling the market here, that and short-term overbought conditions. If the market can continue higher without much of a breather, that would be a good sign for the bulls, and the opposite of what we had at the start of the year, when oversold conditions couldn’t produce much of a bounce. We’d like to see the S&P (first chart below) hold 1164 support, but at this point the index could go as low as 1161-1163 without causing much damage. Resistance is the 50-day average at 1180 and falling, with 1182 and 1193 above that. The Dow (second chart) is struggling around its 200-day moving average. Resistance is 10,400-10,405, and it’s hard to find much in the way of support for the blue chips until 10,263. The Nasdaq (third chart) has support at 1960 and 1953, and resistance is 1974 and 1992.
