This consolidation lasted 11 days and provides very good support from 3695 to the 3894 level on an intraday basis. More concentrated support lies in the 3729 to 3884 area because this is where the most volume occurred during the consolidation. The heaviest resistance on a volume basis runs from 3649 to 4149, and the index has failed to get through this area 5 straight times. We continue to see a staggered advance until improvement is seen in the number of stocks breaking out to new highs. There is little resistance overhead, running from 1488 up to the old high of 1527.
Support is very thick so downside is limited.
Improvement in new 52-week highs has stalled while new lows remain in good shape. Also many stocks that are in bases have worked their way up to the top of those bases, setting up for a possible break to new highs. Business Week Online may receive a share of any fees you pay for services. The McGraw-Hill Companies Inc. All rights reserved.