The S&P undercut the 'bullish hammer', negating the pattern. Looking at the weekly chart the next support levels are down at 2,195 and 2,085. I would be surprised if the S&P got down there but you'll never know what may happen in the coming weeks or months.
The Nasdaq is sitting in a similar position to the S&P; a confirmed breakdown on bearish net technicals. Like the S&P, nearest support is a long way away: 5,340 and 5,035, but first will be watching for a 'bull trap'.
The Russell 2000 sits at 14.4% below its 200-day MA, only 0.3% from a "Strong Buy" on my investor watch. Investors can keep working it by adding to positions. Unlike the S&P and Nasdaq there are nearby support levels to work, one of which can be found in the 1,335-1,350 zone (support for most of 2017). Traders looking for a bounce trade can probably start looking here.
For tomorrow, investors can keep on building their positions across all markets. Traders can probably start to look at buying the Russell 2000 and potentially covering any shorts in play.
You've now read my opinion, next read Douglas' blog.
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