Like I said this morning — musical chairs. Just like that the music stopped and the scramble to sell ensued. In a flash the major indices are at eight-day lows. While there was significant price damage — -2.2% on the Nasdaq, -1.4% on the S&P 500 — volume was only about average. So it looks like simple profit taking.
The one troubling thing I saw today was the S&P 500 breaking its July trendline… but that line was probably too steep to be sustainable anyway. I think key levels to watch on the S&P are the November lows and the 50-day moving average. If those break then things could get ugly.
The 10-day moving averages were broken across the board so I’m switching the short-term trends to “down”
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down(-) | Down(-) | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
I agree with “simple profit taking”. The volume was just not there.
Happy trading!
great minds!