S&P Chart Warning as Industry Leaders Add Pressure

Another 2% drop in Intel Corp. (NASDAQ: INTC) and a 3% drop in United States Steel Corp. (NYSE: X) are keeping the drop in the S&P 500 from real recovery as the industry leaders are keeping pressure up on peers and related companies in their sectors.

For Monday’s chart analysis, Phil Erlanger said, “SPY opened with a gap down below support at $145.56. The five minute range is important on a gap down day as are the one hour ranges. The 5 minute range is $145.21 to $145.04. Unless we can rebound through and hold above the 5 minute high and then the one hour high we would not be a buyer today.”

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SEPTEMBER 24, 2012