S&P 500, Dow Jones, and Nasdaq 100 Charts Near Resistance

S&P 500/DOW JONES/NASDAQ 100 TECHNICAL HIGHLIGHTS:

• S&P 500 trading around trend-line
• Dow Jones has confluent resistance just ahead
• Nasdaq 100 lagging, has lesser resistance

S&P 500 TRADING AROUND TREND-LINE

The rally off the low in the S&P 500 has been fierce, erasing most of the damage from December. Given the extended state the market is in with its limited set-backs in recent weeks, a pullback is due. If one is to develop then now is as a good time as any to start looking for price action to begin showing signs of a reversal.

The trend-line off the record high is currently being tested and should we see the market turn down from here then would-be shorts may look to play for near-term weakness. A decline below the Jan 23 low at 2612 will help further validate the notion of a decline. If the market continues to push higher beyond the trend-line, there aren’t any significant levels to speak of until the 200-day MA.

S&P 500 DAILY CHART (T-LINE)

DOW JONES HAS CONFLUENT RESISTANCE JUST AHEAD

The Dow is staring down not only a trend-line from the record high but the 200-day MA. This confluence is seen as strong and likely to be problematic for the index moving forward. A bearish daily reversal bar will add conviction.

DOW DAILY CHART (200-DAY/T-LINE)

NASDAQ 100 LAGGING, HAS LESSER RESISTANCE

The Nasdaq 100 remains a laggard, which may prove as a sign that it wants to trade lower at a faster pace than the other two major indices. Trend-line resistance from October may put a cap on it, but in any event when the market weakens as some point it will be worth taking note if sellers show up in larger numbers in the NDX.

NASDAQ 100 DAILY CHART (T-LINE)