Keep your eyes on the downtrend line highlighted in this previous post: The Nasdaq Composite.
Today’s action looks to place the price above or right at the downtrend line. This is healthy and will signal that in the near term, the selling has slowed.
While I’m sure many would have liked to have seen a +2.5% rise today, frankly, that kind of movement will not be sustained. It is better to let things slowly stabilize. If that can happen, leaders will begin to emerge, and some long setups may begin to work again.
***Update*** Obviously, the market moved from healthy to sickly as the afternoon progressed.
