The obvious concern on further losses tomorrow is an accelerated downward move as this could quickly morph into a 4-6 day decline, perhaps knocking 10% off the indices and bringing them back to the mini-congestion zone from a week ago.
As before, the index to watch is the semiconductor index; it's short term overbought (only have to look at CCI and Stochastics to see that) but it has dual support of the 20-day and 50-day MAs to look too on the inevitable pullback.
Will bulls drive this on or will bears become more aggressive? The first hour of trading will be interesting.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website