The bears ruled for the 6th straight day as the markets closed lower. Of the major exchanges, the NASDAQ lost the most (1%) with elevated volume.

By definition this is a day of selling and the next level of significant support will the be 200MA.

Here’s a chart:

The NASDAQ has only rested one day after declining 5.64% in the last 6 days.

I still hold my position that we will see some sort of pause in the decline that could result in a single day gain of a percent or so. Between that and the approaching 200MA, I wouldn’t suggest picking up a short just yet.

I expect that the 200MA will be somewhere around 2,630 if we continue falling like we are which would result in ~1.7% fall before a likely bounce. If the market gets volatile, you could easily get stopped out of a short at this position.

Shifting gears, I wanted to bring to your attention a great article on the Wall Street Journal:

• The Economy Is Worse Than You Think from Martin Feldstein at the WSJ

Give it a read as it offers great insight on our current status and how we got where we are currently.