Further Selling, But Breakouts in Tech and Small Caps Hold

More losses, but breakouts in Tech and Small Caps hold for another day. However, there is no more wiggle room for these breakouts, Large Caps are already under pressure. The S&P is inside its range and technicals have started to waiver with a 'sell' trigger between +DI and -DI.


The Dow is also under pressure, with additional technical weakness in On-Balance-Volume, ADX, and Momentum. The trading range is intact and bears can't call a victory until a loss of 17,625.


The Russell 2000 tagged breakout support, but managed to finish with a bullish 'hammer'. If there is a concern, it's that the hammer didn't occur on oversold momentum. But until 1,278 breaks, bulls hold the edge.


The Nasdaq had a more bearish finish to today, but it did hold on to 5,096 support.


Friday is an interesting day. A weak end-of-week finish is on the cards unless bulls mount an attack.

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

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