The equity markets have had a great rally from its lows over the past few weeks. However this rally is starting to look a bit overbought. We had an initial target at 7750 basis the June Dow Jones futures contract. It did exceed that pricing. The next level of resistance is the 8100 to 8300 and a longer target of 8900.
As the market is overbought we may see the market drift towards it support levels before moving higher. There is support between 7783 to 7750 and down to 7690 and major support near the 7500 level. If the market falls below 7450 we could be looking at some more downside.