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Buyers Report Absence

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No denying who took control today. Buyers will have their work cut out if they are going to regain it. Today's dominant red candlestick will likely see some come back tomorrow, but eating back all of today's losses will be more difficult. The S&P lost over 2%, knocking out 2,045 support and returning all technicals into the red. Volume climbed as distribution. The 200-day MA is now the line on the sand for bulls. The loss is significant and will not be easily recovered.

Scrappy Day

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Tough day at the office with sellers having all of the fun until the Fed meeting minutes jacked up prices, only for sellers to return into the close. For the S&P, each test of the 200-day MA weakens it, and we are probably getting close to the point we get a decent push down, and a move outside of the longstanding trading range which has plagued this market throughout 2015. Even a modest 10% correction off highs would set it to drop below psychological 2000. Should such a move occur it should be welcomed like refreshing rain on a muggy day. The market needs direction. The Nasdaq dropped below 5,038, but 4,950 is key support - which is also close to where the 200-day MA is.  Still plenty of places for buyers to step in, and this is not looking as vulnerable as the S&P. The key disappointment for Tech was the loss of support from what had looked to have been a bullish wedge in the Semiconductor Index.  Technicals are again all net negative. The Russell 2000 had

Markets Retain Majority of Gains

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Not a day for big dramatics, but markets did well to hold on to Monday's gains. Selling volume was lighter than yesterday, so today wasn't seen as an opportunity to sell into strength.  The one index which was perhaps a little problematic for bulls was the Russell 2000. Here, the index lost nearly 1% as the 200-day MA stayed as resistance. This is he second time sellers have attacked this moving average. If bulls were to have a broader concern, then this index is the canary in the mine. Market leadership comes from Small Caps, and action in this index isn't great. Bulls may look to the weak MACD 'buy' as a sign of something better, but 1,189 will need to hold as support.

Preliminary Breakouts?

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The larger picture still holds to trading ranges, but the coiling action in the S&P suggests an upside breakout is in the making. It qualified on the basis of price, but volume was disappointing. Bulls will be happy, but tomorrow needs volume buying to suggest this breakout is genuine.

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