Sellers whipped bulls with an undercut of Friday’s lows on higher volume distribution. There was no denying which side of the market traders were sitting at.
The Russell 2000 (IWM) moved away from its 200-day MA and the January swing low in a substantive push lower. I would be looking at a measured move lower to 200 as a starting point.
The S&P 500 gave up all of Friday’s gains and is now looking at a test of its 200-day MA, although it hasn’t yet lost the January swing low.
The Nasdaq looked like it had banked a successful test of its 200-day MA, only to reverse and go all the way back to testing this moving average. Technically, only On-Balance-Volume is bullish. It doesn’t feel lik the 200-day MA will hold as support, but for now, it is.
Feeding into Nasdaq weakness was the 4% loss in the Semiconductor Index. Today’s loss puts the index on course to test the September swing low around 4,500. Technicals are net bearish.
And the one light of positivity, the Dow Industrials, took its own beating and lost the bullish engulfing pattern from Friday. It too is looking at its 200-day MA.
As a final comment, I will leave this chart on bullish/bearish investor sentiment - it looks like we are at the start of a new bear market.