Nasdaq Technical Picture

The Nasdaq and all of the major U.S. indices had a very bearish session today. Volume was above average at 2.1 billion shares and above yesterday, so this is a distribution day. All of the industry sectors on my quote screen are red except the SOX which squeaked by with a gain of 0.11%. The semis were almost not tradable due to excessive choppiness all day. On a positive note, BRCM traded higher in AH trade by as much as a dollar. CSCO earnings were good so maybe we can have bounce tomorrow for a change.

In the early afternoon the Nasdaq breached the mid-January low, but managed to close above it by 3 points. Both the stochastics and the McClellan oscillator are approaching oversold levels. The ADX line is finally flattening and will likely pick up momentum in the coming days and weeks. Now that we have violated the trendline in earnest, we can acknowledge the bears. On the other hand, maybe this is just a bear trap.