Markets finished at session lows Wednesday as both the Nasdaq and S&P 500 fell 1.3%. The Nasdaq closed right at the 3400 level, which we like to say the markets like to pause at big round numbers. Do we feel that the Nasdaq can go lower from here? Yes. But on the upside you notice looking at the Nasdaqs chart that it had trouble with the 3500 level. It closed once above that handle on 5/21, but traded intraday above that level 5 times. The S&P 500 managed to close right at its 50 day SMA. Time will tell if that holds, as this will be the third time it is testing that moving average. Each time thus far it has held however, so maybe the benefit of the doubt needs to be given. At this time I am watching what is holding up well in the recent carnage, for potential longs going forward. The short list includes names like VNTV NR. But for the time being the benchmarks have been bruised until they can prove themselves. More leaders today were wounded, a bad sign. FAST which had been 2 days into building a possible handle on a cup base, torpedoed more than 6% lower, undercutting its 50 day SMA.
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