Technical Analysis: Support Holds Again

Note: The Technical Analysis column will return Aug. 21.

Stocks held onto major support levels again today, but now they need to turn higher; traders will have lots of earnings reports and inflation data next week to help them make up their minds. The Dow (first chart below) is facing the biggest levels of the major indexes, the major support zone of 11,000-11,040, and so far it’s holding. Resistance is 11,150, 11,190-11,220, 11,290 and 11,344. The Nasdaq (second chart) continues to hang onto 2050 support, with 2035-2040 and 2012 below that. To the upside, the techs face tough resistance at 2075-2080 and falling, and 2100 above that. The S&P (third chart) continues to cling to 1262 support, with 1259 and 1245 below that. Resistance is 1271, 1275 and 1284. Bond yields (fourth chart) continue to creep higher here. And finally, an interesting chart on fed funds and bond yields at chartoftheday.com today suggests the potential for recession ahead.