It was not particularly pretty but it was effective. There was no further drive lower but traders were happy to step in to defend moving averages; those who made the leap were rewarded with an attractive risk:reward opportunity.

Yesterday's respite didn't lead to a bounce, instead, sellers took another swipe at the markets. The worst performer was the Semiconductor Index as it gave up near 2.5% on the day. Today's selling undercut the trendline and finished on its 200-day MA. Technicals are all net bearish but with intermediate stochastics not oversold there is still an opportunity for further losses. Relative performance also expanded on its losses.  The 200-day MA may offer enough traction for a bounce, although given the nature of the sell-off some 'oversell' can be expected.                                                                                                                                                                 

It was worse than expected day for Semiconductors as a sizable gap down and run close to the 200-day MA drove it through many potential support levels. Shorts will be looking to attack the next bounce with a close of today's morning gap the first short entry opportunity (for those who didn't take the 'tweezer top' short).

There was no real change on the end-of-week position of markets. The Semiconductor Index was the most active with an undercut close of the week's swing low Next support level is the 50-day MA.