Technical Analysis: Techs Take the Lead

The Nasdaq (first chart below) took out its August high today, the first index to take out that important reaction high from the July-August decline. Next resistance for the techs is 2675, and 2600 and 2576 are support. The S&P (second chart) faces the same resistance level at 1504, and 1477-1480 is first support. The Dow (third chart) would face that same test way up at 13,696, evidence of just how much the techs are outperforming here. First resistance for the Dow is 13,500, and support is 13,387 and 13,315. Bond yields (fourth chart) have given nothing back and look like they’re consolidating for another leg down.

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

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