Daily Market Commentary: Tech Continues to Sell Off

Sellers kept the pressure on, with Technology taking the brunt of it. The swing low (and former 'bear trap') from early April was knocked out. This leaves the Nasdaq's 200-day MA as the next target. The Nasdaq 100 also knocked out its swing low, but almost managed to make it to its 200-day MA. Look for other indices to do likewise.

However, the semiconductor index was able to dig in at the April swing low. If this can hold tomorrow, it will offer a foundation for a bounce if the Nasdaq and Nasdaq 100 (the latter in particular).

The Russell 2000 has the largest room to fall. It's hard to see support, so it will be looking to other indices to help it build a recovery.

The S&P finished on rising channel support. In the process, it did undercut the 50-day MA, but channel support is of greater significance.

Friday should see some buying with indices lurking at support.  The question is whether there is enough support for indices to mount a tradable rally? Stops on a loss of support is a good place to start.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.

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