Daily Market Commentary: Selling Intensifies
Weakest was the Russell 2000. It registered over an 1% loss as the measured pullback gave way to more active selling. Tomorrow will see how valued 1,180-1,182 support is for the index. The CCI experienced an advance 'sell' signal.
The S&P is well above breakout support, and while today registered as distribution, there wasn't the point loss to suggest anything particularly worrisome. Having said that, today was the kind of day for those sitting in profits to be taking money off the table in case things should get worse.
The Nasdaq finished the day down at its 20-day MA, but the real support level is 4,231. Watch for tight action around the 20-day MA as the index digests the substantial distribution selling of today. Note the 'sell' triggers in MACD and On-Balance-Volume; technicals traders might use this opportunity to take an aggressive short (although some form of short term bounce to test 4,371 looks more likely).
After weeks of ascent, the Nasdaq Summation Index finally ticked downwards.
For tomorrow, look for relief bounces, but there will be an opportunity to take aggressive shorts as 52-week (all-time) highs are approached. Look to pre-market for leads.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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