Resistance held on the major indexes today, not surprising given how overbought the market was. Can the indexes muster another run? It’s certainly possible, but sentiment suggests the best course for the bulls might be a correction or consolidation. The equity put-call ratio, for example, showed little fear today. If the correction continues, we need to see traders start to load up on puts. The Nasdaq (first chart below) failed once again at the 2000 level. If it can clear that, 2050 is the next resistance level. Support is 1967-1972, 1960-1962, 1950 and 1940. The S&P (second chart) is struggling at 1070 resistance, the .382 Fibonacci retrace off the index’s all-time high, and a level a lot of traders are watching. 1083-1093 is next resistance, and support is 1064-1065, 1058-1060, and 1050-1054. The Dow (third chart) continues to hit resistance at 9900, with 10,008, the .618 retrace off the all-time high, a major resistance level above that. Support is 9825-9837, 9800 and 9770.
