Image Source: PexelsThe daily charts have shown that indices have been in a bit of a free-fall recently, so the focus now shifts to weekly timeframes. The S&P 500 was the last of the leading indices to break weekly-trend support, lining up the 200-day MA for the next support test.Volume climbed to register as distribution, rubbing salt into the wound of bulls. The only positive for bulls is that intermediate stochasics [39,1] are above the bullish mid-line. However, with other technicals turning negative, it’s unlikely to stop the rot. The Nasdaq lost weekly support and has (ironically) been testing the bullish ‘Golden Cross,’ but this bullish signal is looking more like a ‘bull trap,’ and I expect this index to continue moving lower. Last week’s selling volume didn’t quite rank as distribution, but volume was still high. Despite breaking the rising trend, it hasn’t challenged intermediate stochastic support, and this might be critical in the coming weeks. The index most on the rack is the Russell 2000. It has made its way all the way back to 2022 June lows, lows that I had marked as major buying opportunities for investors as they occurred near the 200-week MA. The situation is more damaging now, with the 200-week MA being long since breached and technicals appearing net negative in a straight push to this key swing low.It appears that one should expect the worst to come, with a weak bounce perhaps being the best potential outcome. I should add, however, that investors shouldn’t be fearful here. Yes, the index can go lower. But if there is a crash, the market will make it’s way back and there will be real value in small-cap stocks. The final chart to look at is the Semiconductor Index. The weekly chart is back at key price support alongside its 50-week MA (effectively, the 200-day MA). It’s still likely weeks away from a test of its 200-week MA, which other indices have now breached. If this can hold, it will offer support for the Nasdaq and potentially spread some goodwill to other indices. More By This Author:S&P And Nasdaq Play Catchup With Russell 2000 Weakness
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