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It was the first real bearish day in a while, but one bearish day is not something to get too concerned with. For the Russell 2000 (IWM) there was a sizable bearish engulfing pattern at overbought momentum. Volume surged against general quiet summer trading, confirming distribution, but not enough to switch On-Balance-Volume to a 'sell' trigger.
 

While other lead indices also experienced confirmed distribution, the level of selling was not as extreme as for the Russell 2000 ($IWM). The daily loss in the S&P was light on a percentage basis at less than half-a-percent, but there was a new 'sell' trigger in the MACD.
 

The Nasdaq closed with a bearish 'black' candlestick at overbought momentum that has also come with a 'sell' trigger in the MACD. It has surged in relative terms to peer indices, because it managed to finish with a higher close.
 

Bearish reversal candlesticks at an overbought momentum state tend to be reliable, and combined with higher volume distribution suggest a down leg is coming. Given the breakouts, I would be looking for retest of these support levels, that will offer trader's new buying opportunities.

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