Daily Market Commentary: Selling Hits Hard

There was simply no hiding today. The Russell 2000 took the brunt of the selling, dropping 2% and finishing near the low of the day.  Other indices were similarly hit, but none to the same extent as Small Caps. Volume rose in a confirmed distribution day. The S&P was notable as it gave up 200-day MA support.

The Russell 2000 is just ugly. Support at 765 is next.

The Nasdaq is furthest from 200-day MA support. It finished the day with a 'Death Cross' between 20-day and 200-day MAs.

While it hasn't done so yet, the semiconductors have struggled, but there hasn't been a break of the October swing low.  Relative strength has been good, but there is much work to do before it can take on a role as recovery-leader.

Today's selling will offer some short term floor, but it may still too early to call a swing low.  On the positive front, semiconductors haven't been as weak as other indices, which suggests a Tech recovery is not far off.


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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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