The S&P 500 retreated from resistance at 2800. Retracement is modest and I expect support above the rising trendline (2700). Volatility (Twiggs 21-Day) is below 1.0%, indicating that market risk has returned to normal levels.
The tech-heavy Nasdaq 100 is in a stronger position, making a new high at 7300, but is now likely to retrace to test the new support level at 7000. I am wary of Twiggs Money Flow as a lower peak would signal bearish divergence. A lot will depend on how buyers react at the new support level.
China’s Shanghai Composite Index, on the other hand, broke support at 3000, signaling a primary decline. Initial target is the February 2016 low at 2700.
Hong Kong’s Hang Seng Index weakened in sympathy. Breach of support at 29000 would signal a primary down-trend.