The Nasdaq (first chart below) gapped down out of a bear flag this morning and kept going, closing just above 1361 support. The breakdown gives the index downside potential to 1240-1260, which is also the top of multiple gaps from mid-October. Possible support levels are 1357, 1347 and 1319. Resistance is 1388-1400. The index also formed a pretty reliable five-day pattern this week called falling three methods, which we last recall seeing in the Dow in late August 2001. In short, not a lot of positives for techs here. About the best news is that the market is a week away from the traditional Santa Claus rally period, so perhaps it can put in a good low next week. The Dow (second chart) also broke down today. Resistance is 8505 on Monday, and support is 8410 and 8338. The S&P (third chart) held its 50-day moving average at 888 today. If that goes, 880-883 is critical support. 893-896 and 900 are resistance.
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