Option Investor
Market Updates

Things are Looking Ugly

HAVING TROUBLE PRINTING?
Printer friendly version

The Nasdaq is down 33 points, and once again testing a key support level.

Nasdaq Composite Daily Chart

After breaking below its up trend last week, the Nasdaq has been unable to bounce back above it. Now today's 1.52% decline has the tech index testing support in that 1934 to 1940 range. The Nasdaq has been able to rally off of this level three times, but have we gone to the well one too many times? The 61.8% retracement offers a safety valve at 1890, and psychological support at 1900 may also help to support the Nasdaq.

Microsoft Daily Chart

Microsoft (MSFT) has also dipped below a support level at $64.58. This 38.2% retracement level has supported the stock for the past month and half, but looks in jeopardy today. While breaking this level would not be a good sign, there is support just below at $61.79 and the 200-day moving average.

Citigroup Daily Chart

Over at the Dow, Citigroup is down 73 cents and testing support at $48.20. With the up trend already broken, and both moving averages getting ready to turn down, Citigroup could be ready for a drop to $46.45.

Coke and International Paper are two stocks trying to hold up the Dow, First Health and Concord EFS are trying to support the Nasdaq-100. The Internet Index continues to move lower, now down 3.35%, and the Software Index has dipped below support at 174. Basically, all tech sectors are down over two percent. Oil, drugs, healthcare, and insurance are the only sectors left in positive territory.

Jeffrey Canavan
Assistant Analyst
www.premierinvestor.net

Intraday Update Archives