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Technical Analysis: S&P Breaks Down

We'll start with the one positive today: internals were pretty solid despite the big losses on the indexes. The rest, however, is negative. Most important is the breakdown on the S&P (first two charts below), which gave up its month-long uptrend today. The index would need to clear 1125-1127 Monday to recover that breakdown, and 1131 is resistance above that. Support levels are 1116, 1112, 1105, 1100 and 1093-1097. Another big negative is the equity put-call ratio, which came in at a bearish .43 on a significant down day. Sentiment continues to show the most complacency we've seen in some time. The Nasdaq (charts three and four) held 2077-2080 support today. If that goes, 2060 becomes important support. Resistance is 2093-2100, 2113 and 2120. The Dow (charts five and six) is right at an important support level; below about 10,425, the index's November uptrend would be done. Resistance is 10,500, 10,550, 10,589-10,592, and 10,670.