The Dow Jones as I write this is down 232 points, people are freaking out, you can see that by the surge in inflows into money market funds.
Internally the market has been dying slowly, the lower the price, the lower the market capitalization, the bigger the hit. h/t Michael Batnick
The stocks within every SP500 sector has had a significant pullback from their 52 week high while the index itself is still a stone throw away from its high. h/t Chad Gassaway.
Currently only 8% of the SP500 stocks are trading above their 3 day moving average, 10% are above their 5 day moving average, this has led to short term bounces. Short term bounces don’t have to be played, but they can be taken as an opportunity to lighten up if you wish. For the most part the market gives a choice to sell on the way up or on the way down.
The SP500 is now flat for the year, 2057 is year to date break-even, it has been a magnet and a level that has acted as support. If we break 2057 and stay below we can have an air pocket situation.
Stocks down 25% or more in the last month stands at 211, spikes above 200 have led to bounces.
With 10 recent distribution days and today possibly being number 11, chances are high that Investors Business Daily will change its market pulse from “uptrend under pressure” to “market in correction”. This has been viewed as contrarian signal lately.
So far what has held up the best is finally getting hit a little today $AMZN $GOOGL $NFLX.
Stay Tuned, Everybody is workin’ for weekend.