Solid internals today, which could provide a foundation for more upside, and with first-of-the-month inflows coming in soon, the market could soon find support. The charts have taken a beating, but a market that’s been as strong as this one may have some surprises left in it. Options indicators haven’t turned bearish as quickly as we’d like to see, but a little more volatility as the market tries to find its footing could take care of that. The S&P (first chart below) needs to get back above 1393, and support is 1375, 1368 and 1360. The Nasdaq (second chart) is trying to form a new uptrend line here. Support is 2397, 2390 and 2380, and resistance is 2430 and 2440. The Dow (third chart) has support at 12,072, 12,000 and 11,965, and 12,215 is the level to beat to the upside. Bond yields (fourth chart) could be headed much lower if today’s breakout holds.
