Market at the Critical Support

The DOW 30 Index and the S&P500 Index are both near the critical support level.

• Both are near the May 2010 Low (which happened to be slightly lower than the Feb 2010 Low).
  
• Both are also near the 50% Fibonacci retracement - drawn from the July 2009 Low to April 2010 High.
• Both are way below the SMA 200 (critical for long-term investors)

The Nasdaq composite Index is somewhat similar.

Should the major indices break and close below the May 2010 Low, it may spells more trouble for the Bulls. The Bears will. have a good time and bring the markets lower. Attached is the SPY (S&P ETF) chart for reference. It closely follows the S&P 500 Index.



Cheers !

PersianCat