Sellers stick around for a second day

There was a bit of a hangover to Friday's selling with opening action pushing more downside. However, buyers were able to dig in at yesterday's lows. The S&P found support at 'bear trap' support at 2,072, although technicals are again net bearish. The real need is for the S&P to get out of its 2080/120 range.

The Nasdaq looks to have confirmed a break of wedge support, but it has held on to its 50-day MA. The next support target is the 200-day MA.

The Russell 2000 may have another 'bull trap' to navigate, although the channel hasn't enough touches to define it as a major channel. The 'bull trap' may just require a redrawing of the channel line.

The Nasdaq 100 is also playing with a break of wedge support while hanging on to 'bear trap' support.

Tomorrow may be the make or break day for buying the dip. Further losses will pull Large Caps away from levels where buyers were happy to step in. Tech indices could be looking at tests of May swing lows, while the Russell 2000 will be looking to hang on to its 50-day MA.

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, and Product Development Manager for 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


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