Today’s rally was led almost entirely by blue chips. That’s okay — as long as tech stocks join in soon. They were weighed down today by continued weakness in chip stocks. Option traders continue to show caution, a plus for the bulls. The Nasdaq (first chart below) found support near its 50-day moving average today. 1852-1854 is now important support, with 1840, 1830 and 1820 below that. To the upside, 1876-1885 is one big resistance area; the Nasdaq missed the low end of that range by two points at today’s high. The S&P (second chart) found support at its 50-day average today, which should be at about 1102 tomorrow. Below that, 1093-1095 and 1087-1090 are possible support zones. Resistance is 1114, 1118 and 1120. The Dow (third chart) has support at 10,025-10,050, 10,000 and 9954, and resistance is 10,108, 10,120 and 10,180-10,200.
