Another solid day today in the face of disappointing earnings and economic reports. It took five days, but the major indexes have largely erased last Friday’s losses. Is there anything standing in the way of new highs for this rally? Aside from sentiment extremes that never reset to neutral, momentum appears to favor the bulls for now, but there are some tough levels just ahead. The Nasdaq (first chart below) faces resistance at 2315 and 2328-2333. Support is 2290 and 2278-2283. The S&P (second chart) faces tough resistance at 1286-1290 and 1295, and support is 1280, 1275 and 1270. The Dow (third chart) faces resistance at 10,950-10,960, 11,000 and 11,070, and support is 10,845, 10,800 and 10,760. Long bond yields (fourth chart) provided some relief today.
