Wednesday, June 13, 2007

Small caps leading down...

Small caps slice through the 50-day MA. There could be some attempt by bulls to salvage 820 - but will it be able to regain the 50-day MA?

The Nasdaq has been peppered with bearish candlesticks on bearish volume. Only the 50-day MA stands between it and a move to the 200-day MA:

Sellers have taken the S&P by the scruff of the neck. A second test of the 50-day MA on such short notice is not good news for bulls:

Given small caps undercut its 50-day MA I suspect the other indices will do likewise. The summer decline should see tests of respective 200-day MAs and from there much will depend on the state of market internals (such as the Nasdaq Summation Index, Bullish percents, and % Stocks above 50-day / 200-day MAs) if a sizable bounce was to materialize.