The recent weak internals proved prophetic today when the market started out strong and then reversed. So what next? The market may still rally on next Tuesday’s Fed meeting outcome, but sellers have an opening here. On the plus side, the Nasdaq (first chart below) has reformed its uptrend line, but the index also looks a bit like a bear flag over the last few weeks. 2075 is important support for Monday, and resistance is 2100 and 2116-2120. The S&P (second chart) has support at 1277, 1273 and 1269, and resistance is 1288 and 1293. The Dow (third chart) will open just above support on Monday. 11,220-11,230 is important first support on the index, and resistance is 11,344. Long bond yields (fourth chart) were the one breakout that held today and are now beginning to price in a Fed rate cut or two.
