NEW YORK (Real Money) -- Some of these very big names continue to struggle on an individual basis. Yet another Dow 30 component hit the bear radar today, with 3M (MMM) possibly leading a charge lower.
If there is any bearish name looking for a bounce this week, it is 3M. Heck, I'd cut that in half and say today or tomorrow. Price is right along not one, but two support lines here. A push back to $159.50 would not be a surprise, but then again it doesn't take the stock out of the current bearish channel. We can't confuse a bounce within a pattern as a reversal. Furthermore, this would not even come as an oversold bounce as neither the slow stochastics nor the RSI are oversold. Both are simply alarming, with the RSI being the more bearish of the two.
We already have momentum bearish, while the trend looks ready to accelerate should we see a bearish crossing on the slow stochastics indicator. The bullish crosses on the slow stochastics have been good for a bounce, but each has been capped by the declining resistance line. With our support line more or less horizontal, this has created smaller bounces. 3M needs a close over $160 to negate the bearish setup. But a close under $155 could accelerate us down. One is $4 away, while the other is less than a buck and indicators favor the bears on top of the price skew