DOW AND S&P OPEN SHARPLY LOWER BUT REMAIN ABOVE SHORT-TERM SUPPORT -- THE NASDAQ 100 RECOVERS FROM EARLY LOSS
DOW NEARS SHORT-TERM SUPPORT... The Dow gapped sharply lower today and inflicted some short-term chart damage. Chart 1 shows its 14-day RSI backing off from overbought territory near 70; the red arrow shows its daily MACD lines forming a lower high than in April which shows some loss of upside momentum. It needs to stay above short-term support shown by its green trendline to keep its short-term uptrend intact.

S&P 500 TESTS SHORT-TERM SUPPORT...The S&P 500 also opened sharply lower today. The daily bars in Chart 2 show the SPX testing initial chart support as defined by the flat green line. Its daily RSI line in the upper box is testing potential support near the 50 line. While its daily MACD lines, however, in the middle box have turned negative.

NASDAQ 100 MAKES UP LOST GROUND... This morning's heavy stock selling was led by the Nasdaq market which fell further below its 50-day moving average and potential chart support along its March high. Selling in the tech-dominated Nasdaq which started last week finally spread to the Dow and S&P 500. Chart 3, however, shows the Nasdaq 100 (QQQ) making back most of its earlier losses and trading near its high of the day.
