Daily Market Commentary: Bull Trap Nasdaq 100

Troubling action in the indices. Large Caps escaped relatively unscathed despite the heavy loss as channel support held. Tech have a little more support to work with but also suffered distribution. Small Caps were just kicked in the teeth with areas of support running out.

I had talked about the importance of the Nasdaq 100 but today's distribution selling looks to have generated a 'bull trap'. The selling brought the index below its 200-day MA, although the 50-day MA remains available as support. However, the damage looks done and shorts will be looking to take advantage of any low volume retest of 2,337.

($NDX)
via StockCharts.com