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Dow holding 8,000

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Stocks are back at their lows of the session and near-term, investors and traders will be eyeballing the 8,000 level in the Dow Industrials (INDU) 8,006 -2.03% to see if psychological support can hold.

I'm thinking "not."

The NYSE Composite (NYA.X) 460.80 -2.3% looks to be making a bold move below our 19.1% retracement level of 464. While there's one-hour left in today's trading, current observations are that there just isn't a lot of buyers taking offers/asks in stocks to make for a move higher before the close.

Volume is brisk today, but yesterday's NYSE volume of 1.47 billion and NASDAQ volume of 1.57 billion will most not likely be exceed. Current volume has the NYSE trading 1.12 billion, with matching volume of 1.18 billion shares traded at the NASDAQ.

Breadth is decidedly negative at the NYSE with 3 stocks declining for every 1 stock advancing. Similar breadth is found at the NASDAQ at 3 to 1.

New highs versus new lows is rather similar to recent sessions at the big board with 47 stocks hitting new 52-week highs versus 189 stocks at new lows. NASDAQ new highs versus new lows continues to stretch, with the "pulling" coming from the downside with just 13 stocks at new highs versus a growing 251 stocks at new lows.

Look for a close below the Dow Jones Industrial Average of 8,000 to be a "headline" in the media tomorrow if it should happen. This may weigh on investor psychology, as if this is the only thing weighing on a bull's mind after recent economic data (excluding retail sales).

Jeff Bailey
Senior Market Technician
Option Investor


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