Markets didn't react well to the Fed rate cut or the words of Jerome Powell, although today's selling didn't kill the breakouts, it did leave them under pressure.
The S&P undercut its 20-day MA and only tagged breakout support of 2,953 but volume did rise in confirmed distribution. Today's action undercut the signal line in on-balance-volume and generated a sell trigger in ADX.
It was a similar story for the Nasdaq with an undercut of the 20-day MA, although the spike low did undercut 8,175. There was a new 'sell' trigger for On-Balance-Volume.
The Russell 2000 also had a wild day but remained inside its rising channel. Unlike the S&P and Nasdaq, it still holds to its MACD trigger 'buy' which protects it from the more public sell-offs in Tech and Large Cap indices.
The only index which is feeling some form of pressure is the Semiconductor Index. Yesterday's selling undercut breakout support, leaving a 'bull trap', but there is still a chance channel support can hold.
For today, the last chance saloon for bulls are the various support levels held after yesterday for the S&P, Nasdaq and Semiconductor Index. There isn't much room for maneuver so if indices are to re-establish their rallies then today is the day when buyers will have to make a stand. Otherwise, it's a drop back into prior trading ranges which - in the case of 'bull traps' - typically results in a move back to prior support, which would mean June lows.