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Technically speaking, the U.S. markets’ lukewarm November bounce is intact.
Against this backdrop, each big three benchmark has sustained a break atop trendline resistance, and selling pressure remains muted ahead of the midterm elections.
Before detailing the U.S. markets’ wider view, the S&P 500’s SPX, +0.49% hourly chart highlights the past two weeks.
As illustrated, the S&P has sustained its November reversal, a move that technically started on Oct. 31.
Familiar resistance matches the May peak (2,742) and is followed by the 200-day moving average, currently 2,764.
Similarly, the Dow Jones Industrial Average has sustained a break atop trendline resistance.
In its case, the 200-day moving average, currently 25,118, has offered support. Recent muted selling pressure near the range top is near-term constructive.
Meanwhile, the Nasdaq Composite is also digesting the Oct. 31 gap higher.
Tactically, the index has maintained first support (7,274) closely matching the top of the gap.
Conversely, the Nasdaq remains capped by major resistance (7,474), an area better illustrated below.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq has initially balked at its breakdown point. Recall that significant resistance broadly spans from 7,474 to the 200-day moving average, currently 7,518.
Last week’s high (7,466) registered slightly under resistance, and the index has pulled in. An eventual close atop the 200-day moving average would strengthen the bull case.
Looking elsewhere, the Dow Jones Industrial Average has extended its rally from three-month lows.
This is the lone widely-tracked U.S. benchmark positioned atop its 200-day moving average.
On further strength, more distant overhead rests at the post-breakdown peak (25,817) and the August