Tuesday, September 22, 2015

Another Wave of Selling

A late recovery managed to put some gloss on today's action. Volume climbed to register as distribution.

The S&P is in the process of regaining a relative performance advantage over the Russell 2000. Momentum remains on the bearish side of the fence with a sub-50 reading.

The Nasdaq gapped lower, but managed to finish the day just shy of where it opened (most of the damage was done pre-market). There was a fresh 'sell' trigger in On-Balance-Volume to add to today's action.

The Russell 2000 broke from its rising 'bear flag' as it held on to bearish momentum and bear crossed the -DI and +DI.

The Dow also broke rising support and is gearing for a retest of 15,370.

It may be Europe which offers a lead. The DAX is retesting the comparable August low (which is a long way from been tested in the U.S. indices), but gains in Europe could spill into another short covering rally for U.S. Index bulls.

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.