The opening rally was immediately sold as the major indexes turned negative about 90 minutes afterwards and faced heavy selling pressure into the second half of action. Volatility tested mid-February resistance levels as the VIX surged nearly 25% intraday but was able to hold the 15 level into the closing bell.
The Russell 2000 remains in a 10-session trading range after sinking 0.9% and testing an intraday low of 1,564. Near-term and upper support at 1,575-1,560 was breached but held by a half-point with a close below 1,550 being a bearish development.
The Dow dropped 0.8% despite making a morning run to 26,155 but was the only index that didn’t clear last Monday’s intraday peak. The 544-point reversal to 25,611 split support at 25,750-25,500 on the close above the former.
The S&P 500 stumbled 0.4% after testing a midday low of 2,767 and closing back below the 2,800 level. Current and upper support at 2,775-2,750 was tripped but held with a close below the latter and the 200-day moving average being a bearish signal.
The Nasdaq gave back 0.2% following the pullback to 7,501 and a 142-point trading range. Near-term and upper support at 7,500-7,450 and the 200-day moving average held with a move below the latter being a bearish signal for additional weakness.
Materials and Real Estate led sector strength after rising 0.5% and 0.4%, respectively.
Healthcare led sector weakness after tumbling 1.3%. Financials and Industrials fell 0.6% and 0.5%.