IBM Chart Concerns Technical Traders

The markets gapped higher today only to fall to the flat line. Volume is light as expected on this Monday in late August. The SPDR S&P 500 ETF SPY is trading down $0.10 on the day at $107.43. Many large cap stocks like Apple Inc. AAPL and Google Inc. GOOG started the day stronger but have turned slightly negative. The market remains weak after last weeks fall. The one stock on a technical basis that must be watched closely is International Business Machines Corp. IBM. IBM is near a break down that could send it much lower. Note the chart below and the possible break. It appears as if today we will see a close below that line and further downside is likely. The first major support on the daily chart would be at $123.00, then a double bottom at $121.00. Over the last few months IBM tried to break out of the range on the upside at $132.00. It failed time and time again. Failed technical moves often result in larger moves in the opposite direction. Stay tuned. For more information, analysis, swing trades and guidance, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com