Technical Analysis: S&P Leaves Market Vulnerable

Note: The Technical Analysis column will return on Thursday.

The S&P’s failure to set a new all-time high has so far been good news for small caps and tech stocks that have benefited from market rotation, but frustration and selling could set in if the S&P (first chart below) can’t take out 1527.46 and 1552.87 soon. In general, the market could be vulnerable to a sell-off around here, as happened when the Dow and Wilshire approached their all-time highs in the last year. The S&P has important first support at 1517-1520. The Dow (second chart) is stalled at 13,600, and 13,500-13,530 and 13,410 are support. The Nasdaq (third chart) faces tough resistance at 2600, and support is 2578-2580 and 2545-2550. The 10-year yield (fourth chart) continues to near its 4.9% target, and first support is 4.775%.