Technicals

U.S. Equities Threatening Support Levels

Testing support from a steep channel, a drop below would suggest that an important top is in place at 10730.  The next level of support is 9679, then 8878.  The level that produced the January top has been significant in recent years (2004-2006), which increases the likelihood that a more important is in place.

After a period of support the Dow has seen its advance slowed by resistance at 10,333-50.0% Fibo of 14,198-6,469.  A break below support would expose 9,679-11/2 low but that may follow a period of consolidation.

The S&P has already broken below its channel, which reinforces the topping theme.  Just as the Dow’s January top occurred at a previously important level, so did the S&P top (see circled area).  The next level of support is 1029, then 956.  Favor the downside.

The S&P 500 is looking to break below trend line support as it has started to consolidate. A break below leaves support at 1,029-11/2 low.

The NASDAQ has broken below a support line drawn off of lows in July and November.  RSI divergence on the weekly plot at the January high is also bearish.  The next level of support is 2024.

The NASDAQ has found support from the rising trend line but the bearish trend remains intact and another test of the level could lead to a break below. The next level would be found at   2,113-11/27 low followed by 2,024-11/2 low.