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5 Blue-Chip Stocks to Avoid

Stocks in this article: IBM GE TU TWX RIMM

BALTIMORE ( Stockpickr) -- Yesterday was a nasty little reminder that Europe is still grabbing headlines, whether investors like it or not.

The S&P 500 shed 1.43% in Wednesday's session, almost making its way down to match the two biggest down days of 2012 set earlier this year. It's not that the broad market is writhing right now -- instead, stocks are actually looking fairly strong from both a fundamental and technical standpoint after the month-long correction that we've been in. (For a global macro look at why, check out " 5 Charts Every Investor Needs to See.") Zoom out a bit and it's clear that we're still bouncing off of support.

But the bounce isn't benefitting everyone right now.

>>5 Beaten-Down Stocks to Invest in Now

Indeed, while the European debt crisis continues to pump anxiety into Mr. Market's I.V., it's shellacking a handful of big-name stocks that have bearish technical setups in the near-term. That doesn't mean that these stocks are junk, only that fundamental investors may want to rethink their decisions to be buyers for a few weeks or months.

There are a few reasons why the eurozone is having such a big effect on these stocks: it could be that they have a lot of exposure to sales in Europe, or merely that investors are looking for any excuse to hit the exit button. Either way, you should be avoiding these five stocks right now - today I want to show you a technical take on why.

If you're new to technical analysis, here's the executive summary:

Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

Every week, we take an in-depth look at big names that are telling important technical stories. Here's this week's look at the technicals of five big stocks you should avoid.

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