By Roberto PedoneBALTIMORE ( Stockpickr) -- Technical analysis can be a great asset to investors who want to determine what the trend of the market or a stock is before they throw down hard-earned money. Consulting the charts can help you spot important market action before it happens, preparing you to follow the trend and make the right trade. Technical analysis is a method of evaluating securities by relying on the assumption that market data, such as charts of price and volume, can help to predict future market moves and trends. Technical analysis will help guide you to discovering the chart patterns that offer the highest probability of success. By consulting the charts and using technical analysis, plus combining those methods with fundamental analysis, you will truly have an edge over a majority of market participants. There has been a lot of talk lately among the chartist community about a technical indicator called the Hindenburg Omen. This indicator is supposed to be predictive of a major market correction once it has been triggered twice. A number of technical indicators need to be meet in order for the Omen to flash a major warning sign. These key conditions are as follows: The daily number of NYSE new 52-week highs and the daily number of new 52-week lows must be greater than 79. The daily number of NYSE new 52- week highs and the daily number of new 52-week lows must both be greater than 2.2% of total NYSE issues traded that day. The NYSE 10-week moving average is rising. The McClellan Oscillator is negative on the same day, and the new 52-week highs cannot be more than twice the new 52-week lows. According to Sentimentrader.com, a second conformation of the Hindenburg Omen was triggered Thursday. This could mean that a larger move down is in the cards for the major U.S. stock market averages. However, I wouldn't trade just solely off the Hindenburg Omen. Instead, I would continue to monitor the action in the S&P 500. Right now, the S&P has officially broken below both the 50-day and 200-day moving averages. This is clear sign that stocks are in a distribution phase and could be setting up to head even lower. The next area of significant support for the S&P is around the 1056 level and then at 1,044 to 1,040. If the S&P breaks below those levels I would look for a move down towards 1,010. Here's a look at some compelling charts that are piquing the interest of the Stockpickr community.
Stockpickr member kjp712 submitted Supervalu ( SVU), a U.S.-based grocery chain that operates 2,349 traditional and hard-discount retail food stores, including 855 licensed Save-A-Lot stores.
Stockpickr member kjp712 also submitted Elan Corporation ( ELN), a neuroscience-based biotechnology company that operates primarily in Ireland and the United States.
Stockpickr member husky20 submitted Motorola ( MOT). This company offers technologies, products, and services for mobile communications worldwide.