In percentage terms, the Nasdaq took the largest hit. However, it remains some distance from the August low. Shorts may look to chase this down as other indices extend beyond August lows, but a recovery in other indices could set up a decent short covering rally.
The S&P finished with a MACD trigger strong 'sell' and is only a few points from lows. The rate of today's selling suggests August lows won't be much of a block. Although pre-market action may offer more of a guide; an open below the August low could be a cue for a rally.
Tomorrow may offer bulls a chance to finally push a squeeze. A short covering rally will be quick and sharp. Look to 50-day MAs as an upside target for a bounce.
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!