The S&P (first chart below) continues to struggle around its 2000 all-time high range of 1527.46-1552.87. This is one of the ways resistance, such as old highs or lows, works — it’s the “get me out, I’m even” impulse — everyone who held an index fund through the downturn is now tempted to cash out. Given the extent of S&P 500 index investing, the market may need to struggle a while longer in this area before it can break through. The S&P has support at 1527, 1522 and 1515-1518. The Dow (second chart) faces resistance at 13,680, and support is 13,600, 13,560 and 13,500-13,520. The Nasdaq (third chart) continues to lead here, a plus for the market. Resistance is 2609, and support is 2592-2594 and 2576-2581. Bond traders (fourth chart) continue to price in growth, not a slowdown.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association
