Stock indexes drop to daily support levels

The S&P 500 ($SPX) fell 0.49 points, or 0.04%, and closed at 1,328.98. The top percentage performers in the index on Tuesday were Massey Energy Company (MEE) (+3.43%), Wells Fargo & Co. (WFC) (+3.19%), American Electric Power Inc. (AEP) (+3.00%), and Capital One Financial Corp. (COF) (+2.60%). Hewlett-Packard (HPQ) (-7.26%), Janus Cap. Group (JNS) (-6.37%), Micron Technology (MU) (-5.78%), and TJX Cos. Inc. (TJX) (-4.14%) were the top percentage decliners.

The Nasdaq Composite ($COMPX) ended the session higher by 0.90 points, or +0.90%, on Tuesday and it closed at 2,783.21. The Nasdaq-100 was equally mixed between gainers and losers. The top performers were Baidu (BIDU) (+3.16%), Vodaphone Group (VOD) (+2.65%), Expedia (EXPE) (+2.44%), and Urban Outfitters (URBN) (+2.38%). The weakest performers were Micron Tech. (MU) (-5.78%), Ctrip.com (CTRP) (-4.70%), SanDisk (SNDK) (-3.36%), and Illumina Inc. (ILMN) (-2.96%).

Nasdaq Composite (Figure 3)

Economic reports to keep an eye on later this week will include Wednesday's Federal Reserve meeting minutes, plus Thursday's jobless claims, Philadelphia Federal Reserve survey, and Leading Indicators Index.

Earnings reports to watch out for are Target (TGT), which reports Wednesday morning, Hewlett-Packard (HPQ) Wednesday afternoon, Deere (DE) Wednesday morning, Salesforce.com (CRM) Thursday afternoon, and Yingli Green Energy (YGE) Friday morning.

Shares of Dell (DELL) were up 5.1% afterhours on Tuesday following better-than-expected earnings.

Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.

Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.

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About the Author
Toni Hansen

Toni Hansen is president and co-founder of the Bastiat Group, Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.

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