NASDAQ Breaks First Support
05/05/2010 9:26 am EST
Just after the Dow Transports made new rally highs, euro zone fears again pushed stocks sharply lower with the S&P 500 breaking support at 1182. This clearly weakens the short-term trend, and the NASDAQ Composite broke below 2466. The next good support is at 2385-2400 with major support in the 2300-2325 area. The McClellan Oscillator has been diverging and looks ready to drop to the -200 area. The A/D lines did confirm the recent highs, keeping the intermediate trend positive.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.