Large Caps finished at the lows and is knocking on the door of another leg lower. Technicals are bearish, but close enough to oversold to suggest a bounce soon. Watch for a washout, like a doji or bullish hammer, to mark a bottom for these indices.
The Russell 2000 finished near recent lows and below its 50-day MA. There is support at 1,190 to lean on, but after that there is the 200-day MA. Relative performance has dropped through the floor, but it has been scrappy throughout the summer. Action has the look of a trading range low, but bulls need to make a stand if this is to be proven true.
For tomorrow, watch for washout swing lows for Large and Small Caps. It may prove to be a relatively uneventful day for the Nasdaq/Nasdaq 100.
You've now read my opinion, next read Douglas' and Jani's.
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Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.