STOCK INDEXES HOLD SHORT-TERM SUPPORT LEVELS -- THE QQQ IS THE STRONGEST OF THE THREE

STOCK INDEXES HOLD SHORT-TERM SUPPORT... The Dow and S&P 500 have spend the past the last couple of weeks consolidating within existing uptrends.   And they've managed to hold onto their existing uptrends.  The hourly bars in Chart 1 show yesterday morning's pullback in the Dow Industrials managing to hold onto underlying support near 29,800.   The hourly bars in Chart 2 show the S&P 500 holding hourly support near 3633.   Stocks need to hold those support levels to keep their short-term uptrends intact.   The Nasdaq has been the strongest of the three stock indexes.

The hourly bars in Chart 3 show the Invesco Trust (QQQ) in a pattern of rising peaks and troughs.  Initial chart support is seen at 303 with more substantial support near 297.   A stronger technology sector is pulling the QQQ higher.

Stocks remain in a overbought condition as measured by a number of sentiment readings; but are being supported by a strong December seasonal pattern.   So the short-term tug of war continues.   It would take a violation of the short-term support levels shown above to signal a market pullback.