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Technical Analysis: The Dow Gives Up Its Breakout

The Dow (first chart below) gave up 8522-8530 support; that's now resistance again, and 8420 is now critical support. The S&P (second chart) is so far hanging on. 920 and 912 are critical levels; below those levels a top of some sort is likely in. Resistance is 925, 930 and 935-945. The Nasdaq (third chart) has resistance at 1502-1506, and support is 1485, 1462-1467, 1450 and 1435. Unfortunately, today's high equity put-call ratio was skewed by one 100,000-put trade in June QQQ puts; take that out and the ratio was a complacent .63. Add to that a slight down day for the VIX, the options volatility index, and you have a correction that has likely not yet run its course.

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