Afternoon Market Update for August 27, 2013

The lack of buying in the markets this afternoon puts the Dow in a situation where a bearish J-hook pattern is being confirmed. This would suggest another leg down, possibly all the way down to the 200 day moving average, near Junes lows.The NASDAQ had a good distance to get down to the 50 day moving average but it has already moved extensively to that target. It would not be unusual to see the markets traded lower Wednesday allowing the NASDAQ to test the 50 day moving average as support. The 8ema should be an important factor for individual stock price closes Wednesday. This market has now produced doubt in the Bulls minds, watch to see what the indexes do at support levels, the NASDAQ should hit one early tomorrow. Have a great trading day.