Technical Analysis: Nasdaq Breaks Down

The market continues to be weighed down by poor internals, with new lows climbing sharply on the NYSE today and a lopsided 29-4 advance-decline ratio. If the market is to advance, the soldiers will have to get behind the generals. The market is undergoing a great deal of rotation and tumult here; how it resolves, and which new leaders emerge, should prove interesting. The Nasdaq (first chart below) broke 2037-2040 support, an important level that is now first resistance. Next support levels are 2015-2020, 2000 and 1990, and resistance above 2037-2040 can be found at 2050 and 2060. The S&P (second chart) has important support at 1126; below that, support can be found at 1120, 1115 and 1110. Resistance is 1134, 1138-1140 and 1146-1147. The Dow (third chart) has important support at 10,330. Below that, support can be found at 10,220-10,270 and 10,100-10,120, and resistance is 10,450, 10,500 and 10,540.

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