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Today's decline appears to have stabilized, but decliners definitely have the upper hand on advancers. Only 6 of the Dow 30 are higher, but none over $1. Decliners have quantity, but not necessarily quality. Only Boeing, American Express, and Merck are down over $1.

Dow and Nasdaq-100 60-minute Charts

The daily chart of the Dow doesn't offer much in the way of support, except for the psychological 11,200 level which has already been lost. Looking at a 60-minute chart shows that the 50-pma should be short-term support. For the Nasdaq-100 (QQQ), the top of the channel at $49.44 is the level that needs to hold.

Networking Index and Ciena 60-Minute Charts

While most of todays declines are a nice and orderly, the Networking Index (NWX.X) appears to have a little bit of panic in it. After falling back below previous highs yesterday, the index gapped down at the open and has fallen 3.90%. NWX looks to have stabilized around 475, but the 50-pma is still a fair distance away from offering any support. After gapping up on news of a deal with AT&T, networking stock Ciena (NASD:CIEN) gapped down $2 today to form an island reversal. Ciena is trying to rebound, but it will be interesting to see if the gap can be filled by the end of the week.

Jeffrey Canavan
Assistant Analyst

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