Market Analysis and Summary
The major indexes all staged negative reversals and closed near their lows for the day as volume expanded across the board yesterday. This added a distribution day to the NASDAQ and S&P 500, which brings the count to 5 and 3 days, respectively.
Will yesterday’s selling ultimately be just another sharp, quick shakeout, before the indexes find themselves back at new highs as we’ve seen happen many times over the last year or so? Or, will it develop into something a little longer lasting?
Leading growth stocks held up reasonably well yesterday, but that could change very quickly after the opening bell. So, pay close attention to the health and breadth of the market’s leadership, while we wait to see how things unfold from here. In the meantime, be cautious and minimize exposure if you haven’t done so already.
NOTE: Check when a company is due to report EPS, before initiating a position. These dates change frequently and sometimes at the last minute, so double and triple check to be sure.
The NASDAQ was making its way toward new all-time highs yesterday, but never got there, before it reversed and closed near its low for the day as volume expanded.
The Russell 2000 was making solid progress back above its 50-DMA, but reversed and ultimately closed near its low for the day and back below its 50-DMA, as volume expanded.
The S&P 500 was well into new all-time high ground, before it reversed and finished the session near its low for the day as volume on the NSYE expanded.
The DOW was working on its 10th consecutive all-time high, before it ultimately rolled over and closed near its low for the day on heavier volume.