On Wednesday, the market opened up and ranged for the first 45 minutes of the day, but then price began declining, and it continued to deteriorate throughout the day.The market breadth, which had opened at +1,600, made a huge turnaround, dropping -2,400 points to close at -800. The market bearishly closed on the lows of the day.

The Nasdaq was the hardest hit of the three major indices, falling -60 points (-1.43%). The S&P lost -13 points (-0.70%), and the Dow dropped -98 points (-0.60%). Volume was higher for all three indices. NYSE decliners led advancers by 2 to 1, and down volume but up volume by 3 to 1. The small-cap Russell 2000 was the worst performer on the day, losing -1.92%.

The Nasdaq closed below its 50 EMA on above average volume, and RSI 20 closed at 39 (weak). It has closed down on 10 out of the last 15 sessions.Today, it was rejected at the 10 SMA and could not rise above the resistance level at 4,240, and it appears to be headed lower.

The S&P and Dow both closed "above" their respective 50 day EMAs. However, the Nasdaq has been the leading index to watch for market signals, so more weight is given the Nasdaq for leading signals of market direction. Today's price action has shifted the market into a correction. It could be short-lived, as the market can shift direction quickly, but for now, the bias is to the downside.