Stock Market Commentary: Negative tone remains

There was no sparks and fireworks, just a general acceptance of Tuesday's losses. The worry is from supporting technicals of indices. None are oversold enough to suggest a short term bottom is in place and many traders seem primed for further losses, or at least, unwilling to buy. The Nasdaq 100 shows the technical vulnerability best; note the dogged action of MAs as resistance.


The way markets are positioned it looks like they are set for a big move down. The Dow is looking the most vulnerable, but at least it's technically oversold:


Nasdaq Summation Index has only now given a 'sell' from prior overbought levels. Very ugly.


Futures are suggesting a positive tone (5:20am ET) but it will need to be strong early to offset bearish pressure.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website