Everything about the charts below suggests the universally anticipated sharp move may be about to begin. The DOW looks like it is the early stages of an Initiative move to the downside. The SPX and RUT closed near their respective lows of the day and at the extremes of increasingly mature, and tight Balance Areas. The NDX is in ascending wedge pattern, and from the Auction market perspective this is simply a two-sided directional trade that almost always resolves in a very sharp move.
I don’t see how one can be bullish based on the closes of the indices. However……IF things are as bearish as they appeared at the cash close we should see immediate downside follow-through and little retracement into Tuesday’s cash ranges. Closes above today’s highs in all four of the indices opens up other scenarios.
Internals continue to be EXTRAORDINARILY weak. The NDX is propping up the entire market. This WILL change, one way or another.