stochastics

Markets hate uncertainty more than bad news, which is one reason they've swooned recently. But technical analysis looks at the patterns deeper than the daily news, and charts suggest a real bear ahead.

Financial markets are becoming increasingly schizophrenic, ruled by erratic ups and downs. It's at times like these when technical analysis can help investors manage the emotional roller coaster, which is why for chart watchers, the catchphrase of the next few months could be "mind the gaps."

Having hit 1,150 on Friday, the S&P 500 is now at a crossroad: Will it fall back, or continue marching up to the next technical target around 1,200? No one chart can say for sure, but here are some points to be aware of -- and to watch in coming days.

The frustrating truth about technical analysis is that it requires interpretation. Ideally, a stock chart would only be able to be viewed one way, shouting "buy" or "sell." But as the saying goes, "If it were that easy, we'd all be millionaires."

Investors are reeling after Wednesday's global decline in the equity markets, as the Dow fell 265 points and the S&P 500 lost over 2%. Some key charts suggest that the battle between bulls and bears is approaching an important turning point.

The market has been up and down for the past few months, lacking a clear sense of direction. Is this the new normal, or just a pause in an uptrend? Technically, a strong case can be made that it is the latter -- a typical retrace in a longer bullish trend.

Numerous analysts have questioned the foundations of the current stock market rally, but the sagging economy hasn't stopped the rally from chugging into its ninth month. On Monday, the market charged out of the gate and held on to a three-digit gain all day. Though the rally has ground down all...