The S&P is again heading to the 10% 200-day MA envelope. Relative performance is shifting away from Large Caps to more speculative indices, which is bullish in a rising market, but in a falling market suggests a lack of sanctuary.
The Nasdaq is also in the early stages of a retest of the August low. Technicals are weak, although stochastics crept above the bullish mid-line, but not enough to suggest bulls have an opportunity. It may take another run at oversold stochastics to wash this one out.
However, Nasdaq market breadth is getting close to a bottom, if not having reached one already. Only the 2011 had a more oversold low.
The Russell 2000 is also moving down to its low of last week. Of the indices, it's enjoying the best relative performance, and indications of a bottom may appear in this index first. But for now, it's a wait and see.
Indices look set for another run at the August lows, so further downside looks favored. But let the markets decide. Market breadth suggests a trade-worthy bottom is close, and value buyers would be doing well to shop around.
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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