The Nasdaq gapped up and hit the top of its channel in early trade then proceeded to fill the gap. By midday it managed a lower high and it was down all afternoon from there. TheNasdaq closed on its low shedding 12 points and carving out a bearish engulfing pattern on higher than average volume (2.3 billion shares). So we have a distribution day and a clear bear signal at the pivot point. The 60 minute view confirms this outlook and we are headed back to 2280. The SOX is leading the way down, so if you are looking for some good shorting opportunities, it's probably the best place to start. Six of the top 10 losers on the NDX were semis including the three worst: LRCX, AMAT, and MRVL.
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