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Today's technical outlook: Watch out for a bear trap

With turmoil in virtually every equity market, caused by the uncertainty of the world's economies, there was a rush for the exits Tuesday. But negative breadth of 14-to-1 on the New York Stock Exchange -- with just 1.6 billion shares traded -- is usually not the mark of a breakdown but of an emotional selling climax.

Yesterday, the Dow's close came within just 0.31 of the index's lowest close made on Nov. 20 at 7,552.29, with decliners on that day ahead by 15-to-1. Curiously, on that day the Nasdaq recorded breadth of 6-to-1 compared to a negative 5-to-1 yesterday.

Continue reading Today's technical outlook: Watch out for a bear trap

Symbol Lookup
IndexesChangePrice
DJIA+79.0112,880.24
NASDAQ+28.042,931.92
S&P 500+9.971,352.61

Last updated: February 13, 2012: 03:12 PM

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