So far, stocks are holding up well here. We have what is essentially a flat consolidation on the S&P’s (first chart below) main uptrend line. Unless stocks have other ideas — a not inconceivable possibility given the run-up we’ve had — the next move should be up. Internals were solid today, and we even had a little spike in fear among options traders at the open. 1376 remains critical support, and 1389 tough resistance. The Dow (second chart) has first support at 12,080, and critical support at 12,040. 12,200 remains the level to beat to the upside. The Nasdaq (third chart) recovered nicely from its downside reversal yesterday. Resistance is 2397-2400, with 2420-2425 above that, and 2376 is important support. Bond yields (fourth chart) surprised to the downside once again, but major support lies just ahead.
