About the only good news today is that volume was significantly lower than it was on Friday. Other
wise, the technical developments were all negative. To begin with, today was a 90% downside day on the NYSE and Nasdaq, a sign that the bullish 90% upside day of a week ago could be negated. However, as we said after the first 90% downside day two weeks ago, a strong rally can follow a 90% downside day, so it's
possible we could see more upside. The Dow and S&P (first two charts below) fell back below the cri
tical support levels of 8250-8300 and 870-875, which are now resistance. Support is 8076-8131 and 7931-8000 on the Dow, and 859, 852-853 and 843 on the S&P. The Nasdaq 100 and the Nasdaq (third and fourth charts) put in nasty "evening star" reversals today, a pretty reliable pattern that has marked a lot of tops in both indexes over the last three years. The Nasdaq also fell back below its December downtrend line, a double whammy. Cri
tical support is 1353 on the Nasdaq and 1020 on the NDX, and resistance is 1378 and 1390-1392 on the Nasdaq, and 1064-1069 on the NDX.
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