Technical Analysis: S&P Shies Away from 1500

You don’t need us to tell you what stopped the stock market today: the S&P (first chart below) came within a point of 1500 before turning back. But what is perhaps more important is that the Dow (second chart) broke through a rising trendline that has stopped the index since last November. That shows significant strength by the blue chips, and a potential acceleration of the uptrend. Support is 13,190 and 13,150, and first resistance is 13,256. The Nasdaq (third chart) would hit the same resistance level at about 2580, and the S&P at about 1507. The Nasdaq has support at 2545 and 2532, and the S&P at 1490. Bond yields (fourth chart) remain trapped between their 50-day and 200-day averages ahead of Friday’s employment report.

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