Last week's bounce from the swing low looks to be toast with today's distribution selling leaving the Russell 2000 just a few points above that swing low. The net result from today was to leave technicals net bearish with the lows of March the next target.
The Nasdaq finished the day with a bearish engulfing pattern, albeit on light volume. Technicals started with a bearish 'sell' trigger in the MACD as other indicators are likely to follow suit over the coming days. On the daily time frame, a Fibonacci retracement brings things back to the June breakout.
The S&P had the best of the action, finishing with a neutral doji that did little real damage. Technicals remain net positive.
We need to watch the Russell 2000 closely. Today's loss came from within its base, so there is no real damage until significant support (or resistance) is broken. However, Small Caps will set the tone going forward and today was a victory for the bears.
Comments
Log in or sign up to join the conversation.