Market Insider

Market smoke signals may be key

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Some of the wind has gone out of the stock market's sails, and choppy trading is looking more like a prelude to a downside move than to an upside one.

Traders on Wednesday may be busier watching market signals than the few earnings and data on the calendar. On Tuesday, a negative technical sign appeared in the chart of the Dow, after its 50-day moving average crossed below its 200-day moving average, a bearish sign known as the death cross.

Monday's big rally was quickly forgotten Tuesday when China's currency devaluation shook world markets. Apple, leading a rally Monday, turned sharply lower, losing 5 percent. Some momentum names wilted along with it, including Priceline, FireEye and Tesla, and the IBB Biotech ETF also sold off. The materials sector slammed, with the selloff in commodities.

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