Stock Market Commentary: Bears build pressure
Continued selling across markets was combined with an increase in technical weakness. Worst hit were small caps; the rising channel broke to the downside and even nicked a break of the 50-day MA.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sVuIyWjG8LBfsw1tbzMPMzer0ePs-yDlg6IGowoUoUQ3-Y-DFQxTT7LvCkivJFi3JIBmevvv996b0Q1a3DrkQyQEQS320HPLEd4PNewDuzwyfZ5MjNOtsGd0n2GBN3yZr-6Siu06fqos717Y6mSnamiw=s0-d)
The Nasdaq closed with a MACD and on-balance-volume 'sell' as the 20-day MA comes under pressure.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vt02uUV8qus7fLVgtuiO9gUlJHunLKfkdHJAIEaVyIE_RfGidk5njYhBFxrRHqRQzrYdZHxmIyQvtbrmcJeuF62VaPnLpXI0ieVgxPBEjGI2ut5G4g-KuLs8zimEdiQ4ISz4Zkz1waqKyVzCobBhd-bA=s0-d)
The Dow took it a step further with a registered distribution day in conjunction with a MACD and OBV 'sell'; the losses were enough to redraw the bearish divergence in the MACD.
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_t4bi03jOlduXs55bdyi7BddQhgyO6iXb3kvvQeNbEh5WEUq8M1Ye7koB2xAPwF51Say7zNAzMWlX0LgRru-UnrhlE7MxSLttlbKgbxdlkmhQi0Zhd6ywyTBxJdyTQX81RzHrur8FZoTnJIihtf4git4w=s0-d)
The doji for the semiconductors at the 50-day MA doesn't inspire confidence as the bull trend disappeared [-DI > +DI; ADX < 20]
![](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tpI3_fqvdxnJDkNmYMtu9CcAalqEugDWGrXSpE8_SCM4tGf5A1OuNRxvTFVgDP9IM7IEcUO_XTpfxtPnUHZBX-yBPROQjq5hjEMEzRURbaQeec03v_HH1MHpSFpFvKVMvQjuJWDxIBSAvZpVC4fqIYug=s0-d)
All eyes should be on small caps given their importance in leading markets. Today's break of the bull channel likely means a scrappy sideways pattern to follow.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
The Nasdaq closed with a MACD and on-balance-volume 'sell' as the 20-day MA comes under pressure.
The Dow took it a step further with a registered distribution day in conjunction with a MACD and OBV 'sell'; the losses were enough to redraw the bearish divergence in the MACD.
The doji for the semiconductors at the 50-day MA doesn't inspire confidence as the bull trend disappeared [-DI > +DI; ADX < 20]
All eyes should be on small caps given their importance in leading markets. Today's break of the bull channel likely means a scrappy sideways pattern to follow.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.