With the losses adding up we can start tracking the relative performance of the indices against their 200-day MAs.  We can see from the table below how the relationship of the indices to their 200-day MAs compare historically.   The Nasdaq is 21.6% below its 200-day MA, which puts it into the 5% zone of historic price weakness and is a "Strong Buy".  The S&P is 12.3% is below its 200-day MA, which is also in the 5% zone of historic weakness.  Finally, the Russell 2000 is 18.4% is below its 200-day MA, which is also the 5% zone.  For each index, we are repeating the action of the Covid 2020 sell off, and the Russell 2000 is only a few percentage points away from the 1% zone and a "Very Strong" buy.

Whatever hope bulls were hanging on too was quickly quashed by yesterday's gap down and today's trading different bail them out.  The Nasdaq did a little better by closing with an (potential reversal) inside day. A gap higher would offer the possibility for a bullish morning star - not to be discounted as a trading opportunity.  No surprise to see technicals net bearish with momentum oversold.

Markets lost more ground on Friday, but the extent of losses was not enough to suggest there was a confirmed break of support across indices - although some are closer to others. The Nasdaq had the worse of Friday's action as it undercut the existing May low with a small candlestick, but one which left any buyer of the index for 2022 in the red - not exactly one to build confidence although some breadth metrics are already at levels where reversals happen .

Markets gained yesterday and lost today, leaving things in a can/can't do situation. If I was to stick my neck out I would say this is part of a swing low and not a fresh move lower, but a close below recent lows ( not an intraday spike low) would leave me with egg on my face.  The Nasdaq enjoyed an accumulation day yesterday, but today's losses didn't rank as distribution despite losing close to 5%. The index is still underperforming relative to the S&P, but the index is oversold.