As for yesterday's action, none of the selling could have been considered surprising. The morning gap was never going to hold after the low volume gains of the prior day. What was more surprising was the late day rally in large caps which put a slightly more bullish gloss on what looked to be a straightforward profit take from short term traders.
Tech markets closed weak, but have put some distance from their withering declines of before; a retest of the 1,652 gap in the Nasdaq looks too inviting to refuse (1,271 for the Nasdaq 100).
Watch how semicondutors test this support; Intel results should help bulls. But futures indicate weakness at the open (as of 5:00 am ET).
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website