International Business Machines Corp (NYSE:IBM) is one of the leading technology stocks in the stock market. This still is also a leading component of the Dow Jones Industrial Average (DJIA). On January 23, 2013 the stock soared higher into the $205.00 level after reporting earnings. Since that time, the stock has been consolidating in a bullish manner, however, that consolidation pattern is now failing. Sometimes the best stock moves come from failed moves and that looks to be happening with IBM.
Today, IBM stock is trading lower by $2.02 to $199.02 a share. Short term traders should watch for intra-day support around the $198.25 level. The daily chart support level should be around the $193.00 area. The decline in IBM will have a negative effect on the DJIA which is a price cap weighted index. Some leading stocks that will also be affected negatively by the decline in IBM include Hewlett-Packard Company (NYSE:HPQ), Oracle Corporation (NASDAQ:ORCL), CA Inc (NASDAQ:CA), and BMC Software Inc (NASDAQ:BMC).