Technical Analysis: Techs Break Out

The Nasdaq (first two charts below) became the latest index to erase its summer swoon, in the process eliminating a negative divergence that was threatening to undo the rally. 2390-2400 and 2420-2425 are up next for the index, and support is 2375, 2358 and 2350. The S&P (third and fourth charts) is pushing through resistance here; next up could be 1400 and then 1420. Support on the S&P is 1382, 1375 and 1355. The Dow (fifth chart) is running up against rising resistance the last few days, and major support levels are 12,080, 12,000 and 11,875. Finally, after looking like they were putting in a major bottom, bond yields (sixth chart) may catch traders looking the wrong way here.

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