Daily Market Commentary: S&P at Channel Support

Sellers kept the pressure on, but volume was lighter than yesterday. The S&P finished at channel support and will find itself under pressure tomorrow. Technical weakness expanded with a 'sell' trigger between +DI and -DI.

The Nasdaq experienced a 1% loss, dropping just below weak support. Technical weakness expanded to suggest further losses are likely.

The Dow is perhaps the most interesting of the indices. It had a picture perfect reversal of resistance and is now sitting (picture perfect) at 50-day MA support. Can buyers make a stand tomorrow?

Small Caps were quiet, sitting neither at key support or resistance.

The Dow looks to be the index to watch tomorrow: potential buy at the open, although indices are showing favour to the downside. Sectorbreadth confirms bearish conditions.

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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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