Yesterday's market action was negative.
The Nasdaq Composite fell 0.29% in below average volume which on paper does not seem that bad. However when you look at what happened on a chart, you can see that the US tech index bearishly reversed and even though volume was tame, it did show an increase from the previous day indicating mild institutional selling (Point A).
Reversals are bearish because they often signal a change of trend. This means the Nasdaq may be indicating that it wants to come down to test its breakout point at 3034 (Point B).
If it does drop further, ideally you'll want institutional investors stepping in to show support. The other scenario is that it may come down further than its breakout point and test the 3000 level, a price point that provided lots of support recently (Point C).
Leading stocks action was neutral.
After yesterday's bearish reversal it looks like the Nasdaq may want to head south for a while. But so far the selling has been mild and it's good to remind ourselves that sometimes reversals occur because of 'too much too soon.' Often an index will reverse but not continue downwards and instead move sideways - another scenario that my play out from here.
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