Big losses swept the market as the Chinese trade war was blamed for today's decline, but Trump chaos has been influencing the market for a long time and the failure of the June breakouts is a more likely cause of the continued selloff. For the S&P, the next move is heading down to retest the June swing low of 2,728.  Technicals are net bearish and losses were less than hit the Russell 2000 so it has actually managed a relative gain. Before it gets there, the 200-day MA is first up.

Markets didn't react well to the Fed rate cut or the words of Jerome Powell, although today's selling didn't kill the breakouts, it did leave them under pressure. The S&P undercut its 20-day MA and only tagged breakout support of 2,953 but volume did rise in confirmed distribution. Today's action undercut the signal line in on-balance-volume and generated a sell trigger in ADX.

Sellers returned as the sequence of buy-sell-buy-sell continued. Action for the last four days continued to coil with the Russell 2000 showing this best with a series of inside days.  I would like to see this pattern break upwards and pressure 1,610s as it would maintain bullish confidence for Large Caps and Tech indices too.  The Russell 2000 still suffers from relative underperformance despite its recent improvement, but all other technicals are bullish, including a MACD trigger 'buy'.

An excellent end-of-week finish left markets well positioned heading into this week. The S&P finished with a new all-time high on light-ish volume. Gains weren't enough to reverse the MACD trigger 'sell' but other technicals are bullish.