Technical Analysis: Breakdown
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Today clearly went to the bears. The Nasdaq and Dow (first two charts below) broke some pretty key support levels, the 1685 shelf on the Nasdaq and the Dow's March channel line. That 1685 level on the Nasdaq is now resistance, and support levels are 1656, 1625 and 1600. On the Dow, support is 9000, 8950 and 8871, and resistance is 9050, 9100, 9150 and 9200. The S&P (third chart) has major support at 962, and 950 is below that. Resistance is 983-989. There was heavy put-buying again today, but it wasn't much help this time. Short-term stochastics are approaching levels where a bounce is possible, but the technical damage today suggests more downside ahead.