NASDAQ Breaks First Support

05/05/2010 9:26 am EST


Thomas Aspray

, Professional Trader & Analyst

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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.

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