The market continues to look like it may need to give a little more before the rally can resume. The S&P (first chart below) faces resistance at 1426 and 1432, and support is 1421, 1414 and 1410. The big round number of 12,500 stopped the Dow (second chart) today. Support is 12,420, 12,360 and 12,300. The Nasdaq (third chart) struggled at a former support line today. Resistance is 2447, and support is 2426, 2415, 2400 and 2390. Bond yields (fourth chart) have stalled at their 50-day average here. Finally, the Transports (fifth chart) continue to underperform, a worrisome trend for Dow Theorists who are still waiting for the index to confirm the Industrials’ run to new highs. The market’s uptrend remains intact, but some sectors have begun to erode here. The good news is the market is entering its two or three best weeks of the year, so there’s some chance to undo the damage here.
