Daily Market Commentary: Bears Win

Yesterday's gains were undone by today's round of selling.  Volume climbed to register a second big distribution day in three as technicals remained under pressure. This selling doesn't look done.

The S&P was able to defend its 50-day MA, which is in close proximity to rising channel support. However,  with similar support trashed in the Nasdaq and Russell 2000, it's going to be hard for the index to hold this support.

The Nasdaq broke through its 50-day MA as it moves to test the swing low. Next stop is the 200-day MA.

Finally, the Russell 2000 pushed a new low, erasing the prior day's buying in a single swoop. This is the first of the lead indices to turn net bearish technically.

Watch the Russell 2000 for a move to its 200-day MA. Expect the S&P and Nasdaq to follow suit.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. You can read what others are saying about Zignals on Investimonials.com.

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