Poof! Just like that a good portion of yesterday’s big rally are gone. In fact, the Nasdaq and the Dow Transports gave back all of yesterday’s gains and then some. Sure you can blame today on expiration if you want but I just see it as the prevailing trend reasserting itself. The Nasdaq and Dow Transports couldn’t even break their 10-day moving averages yesterday so it should be too surprising that they were the weakest of the indices today.
While it’s clear that the path of least resistance is down I’d caution the bears not to get too excited until (when & if) new lows are made. Right now I just see this action as chop. New 2006 lows will be the true sign that the bears still have the upper hand/paw/hoof. 
Here’s the lowly Nasdaq chart:
One day after the S&P 500′s death cross the bears defend the 50-day moving average.
The Dow was the strongest of the major indices today but the sellers still were able to push it under its 200-day moving average.
Here’s the aforementioned Dow Jones Transportation Index.
That was a short trip into “up” territory for the S&P and Russell short-term trends. They both fell under their 10-day moving averages today so back to “down” they go.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Lat | Lat |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down(1) | Down(1) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
