The market action today indicated another day of selling even as stocks closed off their intra-day lows. Under the hood today showed investors selling shares which has become the recent trend. Market indexes were negative as well with the NYSE decliners leading advancers slightly over 3 to 1. The Nasdaq Composite (QQQQ) was the weakest index down 1.4%. However, the Nasdaq was able to close above its 50-day moving average after falling below it intra-day. As a result, we are lowering the support/resistance level on the Nasdaq Composite (see below). We are keeping the support/resistance levels the same on the DJIA (DIA) and S&P 500 (SPY) (see below). The DJIA and S&P 500 are still well above their respective 50-day moving averages. All three indexes are now below their 21-day moving averages after today's market action. Right now this looks like a normal correction so far. Overall, defense is the smart move right now while protecting profits and holding losses small based on the stock market direction. If you need to own stocks, please see our watch list below.
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