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TheStreet.com

Monday May Have Been Just the Start of a Deeper Correction

Despite indications early Tuesday for a market rebound from Monday’s selloff, it is our opinion that the bounce, should it hold, would now be within negative trends that lack bottoming signals at this point. All the major equity indexes closed lower with negative internals on the NYSE and Nasdaq. While closing above their intraday lows, they, nonetheless, all closed below support and their 50-day moving averages, including the Nasdaq Composite (see above), Nasdaq 100 and Dow Jones Transports, which are now negative as are the rest.

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