Cracking Lower, The Bears in Control

The selling continued as all major indices closed lower today, with the RUT putting in a new 16 month low and the SPX and DOW putting new 9 month lows -- VERY bearish.

The NDX had a bad day too, but only put in a 4 month low. More important technically to me on the NDX closed under 1900 which should have been an area psychologically support.

With Intel (INTC) getting hit in after hours trading, the NDX is likely to open lower on Wednesday.

SPX Daily Chart:
After breaking 1390 support and now only 5 point from 1375 support, it seems more likely that if we fall hard that 1362 would be the next likely area of support. On the possibility of a stress event there is longer term support at 1325.



NDX Daily Chart:
So much for the upward target I listed yesterday. The NDX continues to meltdown with no end in sight yet. Possible support areas will be 1875 and 1850, but don't be surprised if there is some "stress event" selling similar to what was seen on the charts August 16th where intraday lows reached 1805. That's not a prediction but just a heads up to what could happen again. It's important to understand the possibilities of what can happen so we can plan our trades accordingly and manage our risks.



RUT Daily Chart:
Doesn't seem like a stretch at this point for the RUT to retest the 670 area.



DOW Daily Chart:
The DOW futures where down 133 points at the time I posted this so a lower open seems probable. Below are some possible support areas.