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Bears got more out of Friday to the extent we may get the larger pullback I’m looking for. We saw something similar in late July that didn’t evolve into a larger test of June lows, but now we can look at retracements that could play into Fibonacci retracements. With Fibonacci retracments we can look at confluence with other support zones – which increases the probability of those price levels playing *as* support. 

The is the index leader. With Fibonacci layered over the move off June lows the 50-day MA is looking like a natural support test. This will hurt the current net bullish technical picture, but it should be better for the index in the long run.

IWM Daily Chart

IWM Daily Chart

The is the next strong performer having reversed off its 200-day MA. The Fibonacci retracement level is also pointing towards the 50-day MA as with the Russell 2000. Adding to the selling pressure is Friday’s distribution day with a new ‘sell’ trigger in On-Balance-Volume.

SPX Daily Chart

SPX Daily Chart

The is tettering much more in favor of bears. We have a relative underperformance to its peers, coming with a new MACD trigger ‘sell’ to join the earlier ‘sell’ trigger in On-Balance-Volume. As with the previous indices, we are likely looking at a test of the 50-day MA. 

COMPQ Daily Chart

COMPQ Daily Chart

If we see a repeat of June, then Monday is going to be a big white candlestick, but I would be happier to see more controlled selling to confirm June lows as the primary low of the 2022 sell-off.

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