Another early rally attempt gives way to institutional selling late in the day. That is the theme we have seen in the last three days, but the indices are still holding major support levels. If they don’t hold, it could open the floodgates for more selling pressure. Let’s take a look at the charts:<\/p>\n
The Nasdaq currently sits right at support of the convergence of its short term channel and the 50 day moving average. It is highly likely that it will eventually drop and test that intermediate trend line around 2080, but if it should drop below that last line of support with heavy volume, a drop all the way to 2000 becomes probable.<\/p>\n
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The Dow has some room to drop before testing its major level of support around 10500. If it can’t hold that level, a drop to 10250 becomes much more likely.<\/p>\n
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The S&P edges closer to its major support level around the covergence of the short term channel and the 50 day moving average.<\/p>\n
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Another early rally attempt gives way to institutional selling late in the day. That is the theme we have seen in the last three days, but the indices are still holding major support levels. If they don’t hold, it could open the floodgates for more selling pressure. Let’s take a look at the charts: The … Continue reading Market Faces a Big Test<\/span>