The S&P made a picture perfect tag of the 10%, 200-day Envelope. Although with trading restrictions in place at market open it would have been difficult to get a fill at this price. But now is a time to be shopping for value in individual stocks
The Nasdaq closed the breakdown gap in intraday trading, but the weaker finish left this in neutral territory.
The Russell 2000 came close to a tag of the 10% 200-day MA envelope. It too looks to be offering value for those willing to take the risk.
The carnage continued elsewhere. The Semiconductor Index experienced a wide range day, but didn't lose as much ground as lead indices. Has a trade worthy bottom arrived?
Or will the VXN push another weak month for September.
Short term traders will likely continue to have it rough, but long term buyers may find some valuables amongst the rubble.
You've now read my opinion, next read Douglas' and Jani's.
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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.
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