Technical Analysis: Techs Take the Lead

Tech stocks finally outperformed today, but not quite enough to generate a buy signal (first chart below). Still, momentum appears to be pointed up once again. The big test this time will likely be for the blue chips. The S&P (second chart) ended the day right at an upper trendline, although a parallel channel line could easily be drawn at about 1450 and will likely be more significant resistance. 1435 is now first support. The Dow (third chart) faces a similar test not too far from here; call it 12,650. First support is 12,554-12,580. The Nasdaq (third chart) is once again facing 2471 resistance, with 2500-2509 above that, but at least the index has put in something of a bottom at a couple of big moving averages. 2450-2455 should now be support. Bond yields (fourth chart) made a slight new high today before pulling back; some hesitance in that uptrend.

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