Markets slumped today as both the Nasdaq and S&P 500 had their worst days of the year by far. Perhaps the Nasdaq pop above 3200 yesterday was merely a head fake. The severity of the late day weakness, hallmark bearish activity, was alarming. Perhaps we learned today that the market was being artificially kept afloat with easy money.My thesis that a weaker economy, which could further impact benchmark strength, is becoming clearer. But today some troubling moves in some powerful sectors raised concerns even before the late day sell off. Homebuilders fell on weak housing starts data this morning. XHB fell nearly 4.5% for the day, by far its biggest decline of the year. RYL LEN both lost near 7% today, surrendering their 50 day SMAs. Chemicals, a good indicator of economic strength were hit. ASH WLK EMN were all down at least 4%. Agriculture plays were off hard today on the backs of a weak CF earnings report. It uprooted, pun intended, its 50 day SMA in strong volume today, losing 5% and closing in on a 200 day test soon. AGU fell 4% on 2/15, but managed to find precise 50 day SMA. MOS in the group also wilted 4% as well. Of course some cloud stocks, are anywhere but near the sky, raining down losses on long shareholders. RAX VMW are both at least 30% off their 52 week highs. Of course VMW, has its father EMC is weighing it down like an over sized dumbbell. Perhaps its time to give utilities a fresh look. XLU is sporting a 37.54 double bottom trigger.
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