DJIA: The Dow Jones Industrial Average has been beaten badly the past couple of weeks. It all started with the break of support (Line 1) last May 21, 2008(Point A). Since then, the index has been trending lower and pretty much established a significant short-term down trend line (Line 2).

The index tried to break free from this trend last June 17, 2008 but was a failure (Point B). To make matters worse, last Friday's performance broke support (Point C).

DJIA is trying to look for a new point of support. With the RSI almost at oversold levels, a rebound is expected. For the bulls, let's just hope that it will break the downward trend line and climb back up to 12,800 to 13,000.

NASDAQ: The large drop last June 6, 2008 forced the NASDAQ to break its medium-term trend line (Line 1, Point A). Two things can happen. Either NASDAQ is currently going into a short pause and continue to trend up when it breaks 2550 or it's going for a down trend.

Comparatively, NASDAQ is doing way better than DJIA.

S&P500: S&P500 followed the movement of DJIA last May 21, 2008 to break a short-term up trend line (Line 1, Point A). Currently it is following the DJIA in a down trend (Line 2). There is prevailing weakness, but the RSI is also nearing oversold levels so we can expect a reversal to happen soon.