After a six-week post-election rally, Friday’s jobs report delivered a reminder that the economy still faces headwinds. If the market is looking for a reason to correct, it now has one. On the other hand, if the rally can continue despite today’s sobering news, that would be one more impressive sign of strength. For now, the picture is mixed after two straight days of indecisive action. The Nasdaq (first chart below) failed once again today to clear its 2153 recovery high on a closing basis. Resistance is 2153 and 2165, and support is 2140-2145 and 2132. The S&P 500 (second chart) faces tough resistance at 1200, and support is 1185-1188, 1178-1180 and 1175. The Dow (third chart) faces resistance at 10,670 and 10,753, and support is 10,520-10,560, 10,480-10,500 and 10,435.
