Confirmation and its counterpart, divergence, are common themes that run throughout market analysis. Their impact is very important not only in charting, but in every aspect of technical analysis as well. Confirmation refers to the comparison of all technical signals to insure those indicators are all pointing in the same direction and confirming each other.

Divergence, being the opposite situation, refers to how a group of indicators fail to confirm each other. Divergence is being used here in the negative sense here, but it is a valuable concept in market analysis. It is one of the best early warning signals for an impending trend reversal.

Yahoo, Inc. (YHOO) has some serious resistance to deal with. Major resistance lies at 33, 33.10, and 33.20. There is support at 32.80 carried over from a consolidation pattern between 32.80 and 33 during Monday's trading session.  YHOO was strong in Monday's weak market, but that doesn't mean it won't give into resistance and move lower.

Celadon Group, Inc. (CLDN) is currently trading at the top end of an uptrend channel per the 6-month daily bars chart. The stock also has high RSI levels, indicating that it is over bought. One thing that deters from the solidity of a short position is the fact that volume has bullish patterns: higher volume on up days, lower volume on down days.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.