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CINCINNATI (MarketWatch) -- The Standard & Poor's 500 Index's closing high for this cycle was established last week at the 1,010 resistance level.
And while this marks a potential resting point for the current rally -- a pullback that may be underway with this week's downturn -- the U.S. markets still seem to be headed higher in the longer term, as detailed below.
The S&P 500's hourly chart details the past three weeks. It shows the S&P responded well to last week's jobs report, briefly notching what might be called a higher high.
From current levels, initial support holds in the 996 area, and is followed by another floor at 982.
Meanwhile, the Dow's near-term view is similar.
Again, the Dow confirmed its uptrend last week, notching a "higher high."
Yet with this week's downturn, initial support holds in the 9,200 area, and is followed by another floor around 9,125.
And the Nasdaq was the only major benchmark not to break higher on last week's jobs report.
Nonetheless, the index has established an eight-session trading range, working off its near-term overbought condition.
From current levels, first support holds around 1,980 and is followed by last week's low of 1,967.
Widening the view to six months adds color.
Following the steep July rally, a pullback, or sideways consolidation phase is obviously in order....MORE
