A victory of sorts for the bulls today, with little profit-taking after two days of very big gains. The one negative is they couldn’t put much of a dent in the major resistance level of 11,040-11,050 on the Dow (first chart below). Support is 10,950 and 10,888. The S&P (second chart) faces resistance at 1262 and 1267, and support is 1245 and 1230-1235. The Nasdaq (third chart) faces tough resistance at 2160, and support is 2120 and 2090-2100. In the fourth chart, a look at the 10-week average of Nasdaq/NYSE relative strength (an indicator of Gerald Appel) shows tech stocks underperforming for all but three weeks since December. It’s hard for the market to go very far without tech leadership. Long bond yields (fifth chart) continue to creep higher.
