There is some chaos occurring in both the stock and commodities markets and this is causing plenty of tension amongst investors. In the stock market, the DOW has given up over 400 points over the last five sessions including a 214-point decline on Wednesday. And, to make matters worst, the technology sector is undergoing valuation issues and is currently trending lower.

 The NASDAQ recently showed a bearish double top after failing to hold at above its five-year pivot point of 2333. In the aftermath, the NASDAQ fell below support at 2200 on Wednesday to its lowest level since January 3. The barometer of tech performance is also now negative this year.

 The reality is there is some selling capitulation in the markets. Investors are becoming quite nervous about the interest rates and valuation. As an investor, you may want to wait for stocks to find some downside support before considering entering into new positions.

 In the commodities market, we are also seeing in oil and gold. The June light sweet futures contract on the NYMEX has broken below $70 support and fell to $68 in Thursday trading. The near- term technical picture is moderately bearish and the Relative Strength is weak. We could see more weakness in the upcoming sessions down to the 100-day moving average at $67.20. A breach here could drive the June contract down to the 200-day moving average at $65.54.

 Likewise in the gold sector, as I wrote in a recent article, gold recently collapsed after trading at a 25-year high of $732 on May 12. As I mentioned, the rapid rise in the price of gold was not sustainable, so the correction should not have been a surprise. But we are seeing some support at just above the 20-day moving average at $672.90. Watch the upcoming sessions to see if prices can hold. Failure to hold could see further weakness as there is no major support until the 50-day moving average at $618.40.

 In all three situations, while the selling is strong, we are seeing oversold conditions, so we could see some near-term buying support. Of course, stocks and commodities could decline further if the market capitulation continues.