The S&P (first chart below) ended the day right on its March uptrend line, but the Dow (second chart) had no such luck, ending the day below that same line.
The Nasdaq (third chart) remains a long way from its uptrend line, at 2440 and rising. 2550-2600 remains tough resistance for the techs, but their relative outperformance remains a positive.
The Dow has important support at 12,743-12,800; below that, 12,600 and 12,500 are next. To the upside, 13,000 should now be very tough resistance, with 13,132-13,137 above that.
The S&P has support at 1400 and 1384-1387, and resistance is 1427-1435 and 1450.
Finally, the Dow Transports (fourth chart) are challenging their all-time closing high of 5446.5, a level of no small importance. Since they led on the way down and on the way back up, it’s a big level to watch. Dow Theory has long assigned the transports greater importance than the Industrials, since raw materials must move before finished goods can. Another area where outperformance is a good thing to see.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.
