A gap down on geopolitical fears and a wave of selling on Fed speak in the afternoon. The NASDAQ carved out a bearish evening star reversal pattern on lower volume. The lack of volume on these wide range bearish sticks has thus far resulted in immediate snap backs. However, today's action concluded with evening star patterns in several tech sectors including biotechs, semis and networking. The NDX heatmap was a sea of red with only half a dozen names closing the session better than breakeven. If the market does not reverse itself in the early going tomorrow, we could be heading for NASDAQ 2100, at which point I believe we could be in for a tradable corrective bounce. But until we make a lower low, its chop, chop back and forth.
P.S. - I noticed that when Bernanke speaks in the afternoons, the markets head south in a hurry. He usually has a more dovish stance when he speaks in the am. Nonetheless, if you're long when he opens his mouth, set a tight stop.
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