Greece Strikes Back (Or Was It China?)

A doubly whammy of weakness from Asian and European sessions left bulls with little room to stretch their legs. Not surprisingly, there were few willingly to make a commitment so bears had the market to themselves.  The good news is that today's decisive selling pushes markets out of their stiffing ranges.

The S&P dropped below 2080, and is knocking on the door of 2040. Technicals are again net negative. The 200-day MA at 2053, just above the 2040 level, may play a role in tomorrow's action.

 

While the Dow has already indicated a break from the March/July range.

 

The Nasdaq gapped out of its bearish rising wedge. Lots of room down to the 200-day MA available. Shorts may look to attack rallies back to 5038.

 

While the Semiconductor Index suffered another big hit. It's trading down at its 200-MA having crashed out of its range.

 

The reversal in the Russell 2000 has left behind a 'bull trap', although this has dropped it back inside the prior range, and favoring a move back to 1,210.

 

Tomorrow doesn't look to offer bulls much despite the heavy selling. It might be a time for a consolidation, although it may only turn out to be only a pause in the decline. A meaningful decline is long overdue, but is it happening now?