Stocks continued their selling ways today with the major indexes declining 1.9%-2.0% on strong participation from investors and on weak market breadth. The DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) have quickly given up the gains for 2011. As a result, we are lowering the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below).

Stocks were down the entire session today but did manage to recoup more than half of their intra-day losses. The Nasdaq Composite (QQQQ) was able to hold its support level of 2,701 on a closing basis after falling below it intra-day. Investor participation was relatively quiet and market breadth was negative.

The market declined significantly today with investors selling shares heavily. Market breadth was clearly negative. As a result, we are lowering the support/resistance levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). The DJIA and S&P 500 are now below the 12,000 and 1,300 mental levels, respectively. The S&P 500 did close at its support level of 1,295.

The market bounced back today after weakness early in the trading session. By the close stocks finished off their highs for the session. Participation did not indicate investors were buying stocks. Market breadth was good though. Staying with the trend we are raising the support/resistance levels on the DJIA (DIA) and Nasdaq Composite (QQQQ) (see below).