Fallon Financial Commentary: Bad, but not that bad Get the latest market commentary and stock trading ideas from Declan Fallon

Sharp losses but no real volume. Significant technical damage (particularly from the MACDs) which could easily be undone with some low volume gains. Had the selling happened next Monday it likely would have carried greater significance, but don't be surprised if markets undo half of what was lost yesterday, today.

The two indices I am keeping my eye on are the NYSE and Russell 2000.

The Russell 2000 tested the 200-day MA in what could turn out to be a nice handle if it finds this key moving average as support. The downside is the position of stochastics in no-mans-land; suggesting further losses likely.

The NYSE lost last week's 3-days worth of gains and is once again under pressure. I have marked the last band of support before dropping into the abyss (which only a bear trap could save). Stochastics are no longer oversold and approaching resistance; another opportunity to see this swing lower.