Stocks opened lower but were able to close mostly at the top end of their intra-day trading range. The DJIA (DIA) finished flat and the S&P 500 (SPY) was down only 0.1%. The Nasdaq Composite (QQQQ) which has recently been the weakest of the three indexes ended off 0.5% as investors were selling these issues. For the DJIA we are raising the support level slightly and keeping its resistance level the same (see below). The support/resistance levels on the S&P 500 are the same (see below). However, we are lowering both the support/resistance on the Nasdaq Composite. Of note the Semiconductor Index (SOX) was pounded once again and has lost close to 6% this week. Semis have shown to be a good leading indicator in the market as many of the things we use in our everyday lives require their components. The action in semis and many other stocks showed investors selling shares heavily. Overall, defense remains the smart move right now based on the stock market direction. No need to be a hero with the market showing some pullback activity. If you need to own stocks, please see our watch list below.
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