The Percentage of Nasdaq Stocks has dipped into swing low territory, but it's typically the first breadth indicator to reach a bottom.
But the Nasdaq Bullish Percents are still some way off. Technicals are not oversold either. Strong swing lows come in the sub-30% area, with minor swing lows possible in the current range.
The Nasdaq Summation Index is getting close, but technicals are still some way from a bottom. I usually look for swing lows from -800 and lower, but it's conceivable a bottom could develop here.
The Nasdaq is trading inside a band of support running between 2,800 and 2,865. The rising trendline of wedge support is also available on the low end of the aforementioned range. Technicals suggest 2,800 won't be a swing low, but price action will always trump technical action.
The Russell 2000 confirmed a breakdown of trendline support. Technicals are a long way from oversold, which is somewhat worrying; 745 support may not be enough.
The S&P followed the Russell 2000 by breaking trendline support. Technicals are only in the early phase turning sour, it may be necessary to watch the Russell 2000 for leads in the S&P.
Will Santa make an early call? Should a swing low emerge it will not be a major one, but it will be a tradable one.
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