The S&P is back showing net bearish technicals. However, the index continues to outperform the Russell 2000.
The Russell 2000 finished the day with a 'bull trap', after a positive breakout yesterday. Technicals are mixed, although with relative performance on the wane it would appear bears have the upper hand.
The Semiconductor Index suffered big losses at over 2% for the day. It has been a strong performing index since May's low, but it may find itself experiencing more headwinds now. Technicals are moving into the bear column.
This has had a clear knock on effect on the Nasdaq and Nasdaq 100. The Nasdaq finished on its 50-day MA, much like it did in early September when it was followed by a powerful rally. Bulls may be looking for a gap (down) and rally tomorrow.
Tomorrow needs a bullish reaction, otherwise a move down to June lows becomes the preferred forecast. There is little room for maneuver for bulls after today.
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.