Markets displayed extreme volatility for the third consecutive session Wednesday. The Nasdaq moved at least 1.5% each day this week. Such unsettled moves are characteristic of market tops. Volume was heavy, giving credence to a potential upcoming correction. The Nasdaq 1.85% today, but more importantly 50 day SMA support gave way. The S&P 500 was lower by 1.43%, but was fortunate to find support at its 50 day. That was impressive to me given the energy exposure the benchmark has. Another ETF that did manage to find 50 day SMA support too was XLF, but just barely. BAC lost almost 5% on earnings, BK 2%. One GS recently put on its conviction buy list, and a recent favorite of mine FRC suffered its third large decline on heavy trade. Its now down 8% on the week, and I am hoping for an entry near its 200 day SMA. On days like today it often pays to sift through the wreckage and locate stocks that actually gained ground. One that comes to mind is NKE, which ignored the negativity.
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