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Technical Analysis: Dow Remains the Big Problem

The Dow (first chart below) remains the stock market's big problem, as the rally was stopped right at the index's main downtrend line and the all-important level of 10,683.

10,100 and 10,000 are the next support levels for the Dow, with 9900 and 9678 below that. 10,450, 10,517 and 10,730 are the levels to beat to the upside, with 10,827 and 11,000 above that.

The Nasdaq 100 (second chart) is another important fulcrum for the market here. The cubes (QQQQ) cleared their 2000-2007 downtrend line last month, and that line is now holding as support at around $44.

The S&P 500 (third chart) hasn't fared as well as the Nasdaq 100; the index cleared its bear market downtrend, only to slip back below it. 1103, 1115, 1131 and 1150-1200 are resistance, and 1080-1083, 1060, 1040 and 1030 are support.

The Nasdaq (fourth chart) will face its 2000-2007 downtrend line at 2400, while 2228 and 2260-2280 are the first big hurdles. The index is right at a support level at 2190, with 2114 the next big level below that.

Paul Shread is a Chartered Market Technician (CMT) and member of the Market Technicians Association. He is a co-author of the book "Dow Theory Unplugged" from W&A Publishing.