The Nasdaq held up well despite the losses in the semiconductor index. The 20-day MA has yet to be tested, but should it happen before the 'bull trap' is taken out then a larger decline is likely to emerge. It's not a great place for new positions: a swing trade on break of today's high/low with a stop on the flip side may offer a quick trade.
The S&P fared slightly worse having already lost its 20-day MA. A step down tomorrow would break the 1,680 support level and set up a move to the 50-day MA.
The Russell 2000 is also lingering on the wrong side of its 20-day MA. Support available at 1,038 with a little more wiggle room than the S&P.
Today's losses were small and in themselves are not 'sell' triggers, but you wouldn't want to see too many of them strung together in a row if you are a bull.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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