Easy come, easy go. It was another one of *those* days — a higher volume, broad-based selloff that left every sector and major index in the red. Yesterday I mentioned that I didn’t like the low volume rally we’ve had and today we see why. The bulk of those gains were wiped out in one fell (no pun) swoop today. It’s just tough to find support from those low volume days. But even after such a good day for the bears the indices are still just range-bound.
Here’s the chart of the S&P 500 which broke its 50-day moving average today:
The Nasdaq is now in danger of giving back last week’s breakout to new 2007 highs.
The Russell 2000 took a hit of 1.85% today
The financials also got hit hard today. Here’s the Broker/Dealer Index ($XBD) which dropped 2.88% today:
And the weak looking banking index ($BKX):
A few downgrades with breaks of 10 and 50-day moving averages.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Lat(-) | Up |
| Short-term | Up | Down(-) | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Hi Mike,
(The patent guy from Van Tharps Peak Performance course) I really enjoy your site…it’s now part of my daily routine….and the quotes are outstanding….I’ve been shorting the housing stocks and am astounded at the magnitude of the subprime mess. As an ex stockbroker from the 80′s who sold some of the early iterations of MBS derivatives to clients I can tell you one thing for sure….very few people in the general investment and investing community really understands these things….so the unwind will definitely be ugly.
Its begining…money will just disappear….S&P: 353 CDOs exposed to possible downgrades
Potential cuts to subprime RMBS may feed through to CDOs, agency says
David
Hi David,
Long time… Yes, the unwind seems to be everlasting. Maybe once people stop calling a bottom they’ll finally turn.
Today’s dip was the bottom for the $HGX. Enjoy!