Good day! After a strong start to the New Year on Monday, the markets came under pressure in Tuesday's session. The strength of the buying into Monday morning kept the bears from completely gaining the upper hand, but the morning reversals off highs in gold and oil accelerated as the day progressed and picked up momentum even further into Tuesday. Crude oil closed in New York at $89.38 a barrel, while gold ended the session at $1,378.80 an ounce. This kept the pressure on the bulls in the overall market as well. Premarket buying on Tuesday in the indices gave way to selling as soon as the opening bell rang.
Dow Jones Industrial Average
As anticipated Tuesday's session was a good one for day traders. The market had a lot of intraday activity with strong directional moves on the five-minute charts. The S&P 500 and Nasdaq-100 futures established three waves of downside to complete a solid downtrend throughout the morning, while the strong Dow had a clear-cut, two-wave continuation pattern on the downside that triggered into noon. By 13:00 ET all three of the major indices were hitting support. The Dow and the Nasdaq were testing their five-minute 200-period moving averages, while price support from previous highs also served to stall the selloff.