Good Morning, Traders. Almost yet another -100 point down day in the Dow, but a 70 point rally in the last 30 minutes of trading pared the losses down to only 46.58 in the DJIA, a paltry 1.44 in the S&P, and a not too scary 6.84 in the Nasdaq Composite. Breadth still finished 2 to 1 negative on both exchanges and only biotechs and insurers ended up positive by a hair from the open on my sector list. There was good volatility to the downside for intraday trading yesterday in the morning, but it dissipated into a slow grind down in the afternoon that left the doji that you see on the daily S&P below. Since the May 8 high and subsequent selloff, we have now dipped below the 200-day moving average three times. Both yesterday's trading and that of May 24, which was the low of the recent move, ended in bottoming tails indicating that this 200ma is a near-term support area. Unfortunately, every bounce from mid-May onwards has been met with selling, which beats the market back down. Currently, not much to report technically as we sit about halfway in the middle of the range of the retracment off of the May 24 low. Near-term bias is very sideways for now. Overall bias in the Dow and S&P remains cautiously bullish with a downward overall bias in the Nasdaq Composite.

Peter Reznicek is the Chief Equity Strategist and a principal of the Prana Fund, a domestic hedge fund, and ShadowTrader, a subsidiary of thinkorswim which provides coaching and education to its clients on both intraday and swing trading of equities. For a free trial to the full version of The Big Picture or to learn about ShadowTrader's other services, visit shadowtrader.net or send an email to preznicek@shadowtrader.net.