Stocks appear to have stabilized so far this Thursday, but what do the charts tell us about where things are going?
Well, as well all know, all of the major equity indexes closed notably lower Wednesday, with broadly negative internals on heavier overall trading volumes. Many charts saw further damage, as all but one index (the Nasdaq-100) broke below near-term support levels. Some indexes also violated their intermediate-term uptrend lines.
The underlying data are a bit mixed. Most indicators remain neutral, but the McClellan 1-Day Overbought/Oversold Oscillators are flashing "Oversold" once again. Overall, the message from the charts and underlying data continue to instruct me to maintain my near-term "Neutral/Negative" outlook for the major equity indexes.
Here's the S&P 500's chart:
And here's the Dow industrials chart:
And finally, here's the chart for the Nasdaq Composite: