On the technical front we continue to track the big tech
leading NASDAQ 100 Index (NDX). Recent selling has breached support levels at
13,000 and 12,720 as shown in the orange and blues line in the accompanying NDX
chart. NDX 12720 is right at the mid-December/early-January consolidation level
as well as December pivot-point resistance (red dotted line) and the January
monthly pivot point (blue dotted line). The old September high of 12420 (black
line) still holds as major support, but was tested today. It is just below the
10% correction level from the February 16 high of 13,774.
If the 12420 support level is broken the next levels of
support are shown in the red lines. First is ~12000 around the October highs in
the midpoint (black 2) of the W-123 bottom and November consolidation. Next is ~11500
in the early November gap up. Then ~11000 at the October lows (black 3)
endpoint of the W-123 bottom and then ~10750 (black 1) at the first point of
the W-123 bottom.