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Technical Analysis: Selling Picks Up

The correction deepened today, as the S&P (first chart below) joined the Dow (second chart) in giving up its March uptrend line.

The Nasdaq (third chart) is the only one with its March uptrend intact, but a move below 2440 would end that.

The S&P has support at 1384 and 1370, and 12,500 is important support on the Dow. To the upside, 1400 and 1425-1427 and 12,743 and 13,000 are resistance.

The Nasdaq has support at 2440 and 2400, and resistance is 2500-2515 and 2550-2600.

In short, it appears that the initial leg up off the March lows is over and the market has entered a deeper correction. There is enough nearby support to hope it won't be too deep.

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