Market Struggles to Rebound

On Wednesday, the market opened down and declined further in the morning session, retesting Monday's low. The lows held, and the market was able to rise and close in the upper end of the day's range. But this is the second day in a row that the market closed in the lower half of Monday's range, a sign that the market has not been able to make a significant rebound following Monday's big down day.

Today, the Nasdaq lost -19 points and closed at 4,011. The S&P fell -3 points to close at 1,751. The Dow slipped only -5 points. Volume fell compared to Tuesday. NYSE declining stocks were 1,761 compared to 1,200 advancing stocks. The bears had a slight edge on the day. 

The Nasdaq has closed below its daily 50 EMA on 5 out of the last 6 days. The 10 SMA is still above the 50 EMA, but it could make a down cross if the market shows continued weakness or sideways movement. The VIX closed for the second consecutive day inside the range of Monday's VIX bar. This suggests the market is still adjusting to Monday's decline; fear has not increased, but neither has optimism.