The markets failed to build off yesterday’s gains and closed significantly lower today. The Dow dropped 1.48%, the S&P500 fell 1.74%, and the NASDAQ fell 1.76%.

This leaves the S&P and NASDAQ right on the 200MA and the Dow approaching. Volume was above average across the board which means that professional traders were more active and are bearish.

Here’s a look at a chart of the Dow:

I've got the support line marked from previous prices but the 200MA will be the first support hit.

I wouldn’t recommend picking up a short on an index at this point simply because we may see some sideways/choppy action hitting this support that could spoil the trade. Wait until the dust settles and it is evident that we will move below the support levels.

In economic news, the Euro fell the most since 2009 as worries abroad affect local markets.

We saw an exciting Pandora IPO as shares were up as much as 50% today but only closed up 8%. Watch for another active day tomorrow for Pandora.