Stocks rallied today with the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) gaining 1.6%, 1.7%, and 1.8%, respectively. The major indexes closed near session highs. Market breadth was good. However, investor participation was lighter in today's session compared to the three strong selloff sessions we have had in the last eight trading sessions.

Today's session saw a selloff in stocks of at least 1.4% in the major indexes. The DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) closed near their session lows. Investor participation confirmed the selling and market breadth turned negative. As a result, we are lowering the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below).

After some strong selling in the prior sessions stocks notched strong gains today. The S&P 500 (SPY) and Nasdaq Composite (QQQQ) were able to close above the resistance levels we recently outlined. Market breadth was good. However, diving under the surface indicated investor participation was not strong and investors might have been using strength to sell shares rather than accumulate them.

Stocks had another down session with investor participation indicating investors were selling shares. The market was able to recover some of the losses so the selloff was not as strong as it could have been. Market breadth was once again negative.