Courtesy of Declan.
Bears keep the pressure the on with another around of selling. Markets remain range bound, particularly after July’s sell off and recovery, which confirmed market trading ranges.
The S&P finished at its 50-day MA on lighter volume selling. Beyond the 50-day MA next comes the 20-day MA, but neither MA has played as support in recent months.
The Nasdaq almost registered a bearish engulfing pattern, but held up better than other indices. Volume was lighter than yesterday’s. Although a support test remains some distance away.
Worst hit was the Russell 2000, which suffered nearly double the loss of other indices today. The rising trendline is looking like the next logical test for bulls.
The other hard hit index, Semiconductors, was actually able to recover some lost ground, but remains vulnerable to fresh losses. The index has shed 15% from high to low, but it does look like it will lose more with buyers likely reluctant to step in here.
Tomorrow could see more of the same as indices look to return to the low end of their range. Again, look to Small Caps to lead, although a successful test of trendline support would give some measure for optimism.
You’ve now read my opinion, next read Douglas’ and Jani’s.
