By Michael Ashbaugh, MarketWatch
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CINCINNATI (MarketWatch) - The U.S. markets are on the defensive following a sharp downdraft overseas, and the latest round of historically weak U.S. housing data.
In the process, each major U.S. benchmark has broken to the month's worst levels, likely setting the stage for a retest of important support.
The Standard & Poor's 500 Index' hourly chart details the past three weeks.
As illustrated, the S&P has established resistance at the 1,100 mark, plunging to the range bottom late last week.
With Tuesday's negative start, initial support holds at 1,056 - matching the late-July low - and is followed by the May trough of 1,040.
As illustrated, the index topped Monday at 10,302, within a point of its 50-day moving average.
And upon stalling at the 50-day, it sold off to the range bottom, setting the stage for Tuesday's downdraft.
