Well we got a sell-off yesterday but it wasn’t due to the PPI report. It was brought on by a weaker than expected consumer confidence report. The Dow and S&P lost about 1%, while the NASDAQ took a 1.6% hit. NASDAQ volume increased ever so slightly over Thursday’s level, which technically counts as another distribution day. That makes the third distribution day on the NASDAQ in the last 10 trading days. Volume on the Dow and S&P 500 decreased on Friday though. So those indices look a bit healthier than the NASDAQ. There’s still the possibility that the market is forming a double top. We’ll have to watch for a break of the June 9th lows for confirmation of that. It also looks like the indices have made lower highs for the first time in over two months. So there’s definitely reason to be cautious now.
To the charts:
The NASDAQ:
The S&P 500… note that 1,000 is holding as resistance:
