The S&P finished at its 50-day MA on lighter volume selling. Beyond the 50-day MA next comes the 20-day MA, but neither MA has played as support in recent months.
The Nasdaq almost registered a bearish engulfing pattern, but held up better than other indices. Volume was lighter than yesterday's. Although a support test remains some distance away.
Worst hit was the Russell 2000, which suffered nearly double the loss of other indices today. The rising trendline is looking like the next logical test for bulls.
The other hard hit index, Semiconductors, was actually able to recover some lost ground, but remains vulnerable to fresh losses. The index has shed 15% from high to low, but it does look like it will lose more with buyers likely reluctant to step in here.
Tomorrow could see more of the same as indices look to return to the low end of their range. Again, look to Small Caps to lead, although a successful test of trendline support would give some measure for optimism.
You've now read my opinion, next read Douglas' and Jani's.
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!