US indices see ominous topping pattern, further declines? – TechTrader

FXStreet (Barcelona) - Harry Boxer of The Technical Trader, summarizes the performance of US indices, viewing that the ominous topping patterns formed are indicative of further sharp declines.

Key Quotes

“The stock market indices had an ugly session, particularly early morning when the markets gapped down sharply, taking out support. They managed to bounce back near resistance, but couldn't get through.”

“The topping patterns that we are seeing are very ominous and could lead to even more sharply lower levels, but it remains to be seen whether they get any downside follow-through. The levels to watch are the 4421 Nasdaq 100 and 2087 S&P 500.”

“Net on the day, the Dow was down 106.47 at 18,096.90. The S&P 500 was down 9.25 at 2098.53. The Nasdaq 100 was down 13.42 at 4445.36.”

“Advance-declines were 3 to 2 negative on the New York Stock Exchange, and 7 to 6 positive on Nasdaq. Up/down volume was 2 to 1 negative on New York, with total volume of 3.3 billion shares. Nasdaq traded over 1 3/4 billion shares, and had a 9 to 8 negative volume ratio.”

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