The Nasdaq closed below its 50-day MA as the early week swing low finds itself vulnerable to an undercut and loss of support.
Expectation would be for a measured move down, which given the 1,000+ point move from the 12,074 high to the swing low, would set a current target around 10,250. Technicals are net bearish with the index underperforming relative to the Russell 2000.
The S&P(NYSEARCA:SPY) failed to recover the rising trend, so no ‘bear trap’ but there is still an opportunity for bulls to defend its 50-day MA. It has the benefit of a relative outperformance against the Russell 2000 to fuel a recovery.
The Russell 2000(NYSEARCA:IWM) had already lost consolidation support of $152.50, then the bounce failed to recover this loss. Technicals are net negative with the 200-day MA the last stand for the index. What happens here will have repercussions for other indices.