Technical Analysis: Indexes Break Down
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The indexes broke support on rising volume today, which suggests that the downtrend may be picking up. That said, stochastics on the indexes (see charts below) are approaching oversold levels, and the equity put-call ratio closed at a respectable .81, so a bounce is possible soon. The Dow (first chart below) broke 8100 support. Resistance is 8050, 8070 and 8100, and support is 7931 and 7838. The S&P (second chart) has resistance at 852, 858 and 862, and support is 841-842 and 830. The Nasdaq (third chart) has support at 1335, 1330 and 1320, and resistance is 1352, 1358, 1368 and 1375.
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