The other bounce candidate was the Semiconductor Index, although the opening gap took away much of the advantage and the index now finds itself challenging the 50-day MA.
The S&P bounced back to its 50-day MA. This is an aggressive shorting opportunity with a stop just above the moving average, but don't linger in the position if there is a push through - particularly if volume is strong. Technicals are still net negative.
The Nasdaq sits in a similar predicament as the S&P, except it's under-performing against the S&P and therefore more vulnerable to shorts. Technicals are net negative, fueling the weakness.
The Russell 2000 finished with a 'hammer' but the index is not oversold, weakening the bullish aspect of this candlestick.
For tomorrow, morning action will determine whether moving averages are going to play as resistance (and a shorting opportunity) or if there is power-through the and the 3-4 day dip below the moving averages turns into a 'bear trap'.
You've now read my opinion, next read Douglas' blog.
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