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Technical Analysis: Stocks Have Fallen and They Can't Get Up

Monday showed us that investors remain wary; what will it take for them to come back in force? Certainly they didn't show much strength today, as the market never even got close to the 1480-1488 resistance zone on the S&P (first chart below). The index is barely hanging onto its 200-day average here, with 1440 and 1427-1432 the next support levels below that. The Nasdaq (second chart) failed around 2570-2580 resistance, with 2607-2612 and 2631 still above that. 2531 and 2500 are support. The Dow (third chart) is mired near 13,000-13,200 support, and the index faces stiff resistance at 13,500-13,620 and again at 13,700. The 10-year yield (fourth chart) bounced between major support and major resistance today. Keep an eye on today's range for breakout clues.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association