The Dow and S&P (first two charts below) broke down out of symmetrical triangles today. If those breakdowns are real, 7800 and 830 should stop any rally tomorrow. Support is 7629, 7500 and 7200 on the Dow, and 818, 806, 800 and 768-775 on the S&P. A measurement of those patterns gives minimum downside targets of 7350 and 781. The Nasdaq (third chart) has resistance at 1320, and support at 1300, 1292, 1275-1280 and 1260. The SOX (fourth chart), the semiconductor index, may have broken down out of a bearish rising wedge today, another negative for the chip stocks. The good news is that the equity put-call ratio is fairly high, so a bounce could materialize soon.
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