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Chartology - Are Stocks Broken?

What do the charts reveal about recession fears as uncertainty haunts the  market?

Dan Fitzpatrick, Co-Contributor and Technical Analyst for RealMoney.com, joins the panel for this conversation. Following is a synopsis of his main points.

Chart:S&P 500
Analysis: I believe the chart has broken a multi-year uptrend of higher highs and higher lows, says Fitzpatrick. Many dip buyers are now losing money and the "I want my money back," dynamic seems strong. If the S&P 500 moves to 1,400 I anticipate big selling pressure will push it lower.
Conclusion:Bearish

Chart: Potash
Analysis: The chart suggests this is one of the few momentum stocks that is not broken, says Fitzpatrick, because it’s still trading above the 50-day moving average after breaking below. I recommend buying it as close as possible to the 50-day moving average. However a breakdown below the last low will signal the end of this trade.
Conclusion:Bullish

Chart: Toll Brothers
Analysis: The stock continues to slide down the "Slope of Hope," says Fitzpatrick. Each move to $23 seems to bring out the sellers who tried to pick the bottom before, and want their money back. Each decline goes farther and farther making it tougher and tougher to maintain the trading range. Typically, in a recession, homebuilders are the first to get hurt and the last to recover.
Conclusion:Bearish

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Trader disclosure: On Jan 28, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (EMC); Finerman Owns (GS); Finerman's Firm Owns (AEO), (GLNG), (TSO), (VLO), (YHOO), (WMT); Finerman's Firm Is Short (MDY), (IYR), (IJR), (SPY), (IWM); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Najarian Owns (C), (EMC), (MS), (MCD), (MSFT), (BIIB); Najarian Owns (AAPL) Calls, (BBY) Puts, (COP) Calls, (CTSH) Calls, (YHOO) Calls, (YRCW) Calls; Najarian Owns (DOW) Calls; GE Is The Parent Company Of CNBC; Fitzpatrick Owns (CREE), (POT), (SEPR)