Daily Market Commentary: S&P Test of 200-day MA
The Dow also switched to a 'Death Cross' between 50-day and 20-day MAs. Selling volume was significantly higher and technicals - not surprisingly - are weak but not weak enough to suggest a bottom. Still room down to 200-day MA.
The Nasdaq posted a 'Death Cross' but has yet to challenge its 200-day MA. Tech has started to underperform Large Caps once more and technicals point towards lower prices (and therefore a likely retest of May lows).
Only the semiconductor index made an attempt at a bounce
So while the indices look poised to make new lows it would be tricky to enter short positions at this point without the risk of whipsaw. The semiconductor index remains the best bet for longs looking for a snap trade with a stop on loss of 334.
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