Daily Market Commentary: Harder Losses

Indices took another hit and are trading at or below Monday's low. On the bright side, selling volume was not very high. The S&P left what may evolve into a bull trap. The rising channel line has been breached, but a horizontal support line connecting June/August reaction highs is holding.

($SPX)

via StockCharts.com

The Russell 2000 came back to its 200-day MA but there was a worrying push to new lows in relative strength to the Nasdaq; suggests there is more downside in the tanks.

($RUT)

via StockCharts.com

However, this time the semiconductor index may help. It challenged its 50-day MA for a second time and is well positioned to break higher tomorrow.

($SOX)

via StockCharts.com

The semiconductor index may help the indices tomorrow but the selling has the look of lasting another day. But it's not plain sailing for bears; there is workable support and a bullish engulfing pattern could emerge given the general timid selling volume today.

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