Technical Analysis: Techs Take the Lead

The Nasdaq (first chart below) is leading the rally here, a show of relative strength that could be good for the rest of the market, since the tech sector tends to lead.

If the Nasdaq can get through 2550, a gap at 2570-2600 is next. Support is 2516 and 2500.

If the S&P (second chart) can get through a ton of resistance at 1428, 1435 and 1445, 1485-1500 could be the next target. Support on the index is at 1405 and rising.

The Dow (third chart) has suddenly become the laggard here, once again facing resistance at 13,000-13,150. 12,900 is now support.

Bond yields (fourth chart), meanwhile, are closing in on some resistance of their own at the 200-day moving average just above 4%.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association.

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