Today’s bounce appeared to run into plenty of selling pressure, at least in the tech sector, where the Nasdaq (first chart below) had to fend off a few bouts of selling just to end the day in the green. That kind of relative weakness in a key sector suggests that stocks may have more work to do on the downside before they can resume their advance. The Nasdaq has important first support at 2674-2677, and 2700-2705 is first resistance. The S&P (second chart) has important first support at 1528-1532, with 1517-1521 below that. The Dow (third chart) has support at 13,800, 13,700 and 13,620-13,640, and resistance is 14,000-14,020. The 10-year yield (fourth chart) continues to hang out below 5%, but 4.9% is still in the way.
Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association