Is there a chance we could see two down days in a row? It seems inconceivable. Anyway, the trendline bounce from yesterday was pitch-perfect. The bulls fought back late yesterday, but this morning has unwound that bounce on the /RTY:
Taking a step back, we can see the next big test is at 1860. That was an important line of resistance (now support) which will be more difficult for the bears to break.
The weakness is not confined to only the Russell, however. Even more exciting is the failure in the /NQ as you can see here with this bruised bullish breakout. Red-hot names like TSLA are limp this morning.
I’ll have some more specific ideas today, but I wanted to do a quick take on things before the open.
