Market Continues to Show Weakness

On Tuesday, the market opened slightly negative and then declined further, never managing to get a strong bounce. By the close, the Nasdaq had fallen -57 points (-1.38%) and the S&P lost -16 points (-0.90%). The Dow finished the day with a loss of -129 points (-0.78%).

Volume increased for all three indices, making this a selling day for the BIGs (big institutional guns). Decliners outpaced advancers by 2-to-1 and down volume led up volume by a 3-to-1 ratio. 

The Nasdaq fell  +29 points (+0.72%), the S&P rose +8 points (+0.48%) and the Dow advanced +86 points (+0.53%). 

Volume was lower today, and less than average for both the Nasdaq and S&P. The Dow's volume was above average. Advancers outpaced decliners by a 3-to-2 margin, and up volume beat down volume by a slightly better 7-to-4 ratio. Market breadth was never positive during the day, and it closed at -1,032. There were few buyers in the market today.

Today's market action formed a daily pivot high in the Nasdaq, essentially causing another rebuff and the 50 EMA. The last 3 tests of the 50 EMA have failed, a bearish sign. The Nasdaq could make a run for its 200 SMA again. 

Meanwhile, the S&P, which looked close to testing new highs, backed off and formed a pivot high on momentum divergence. The S&P is now going to test its 50 EMA (from above, unlike the Nasdaq).