Markets finished the week off Friday underwater all day, and both the Nasdaq and S&P 500 lost 1.9% on the week. The S&P 500 continued to have issues recapturing its 50 day SMA and fell more than 1% for the third time in four weeks. It is almost half way to correction mode down 4.5% from the 1709 and change highs made on 8/2 and 8/5. Notice all three weeks the S&P 500 fell it closed at the lows for the weekly range. The Nasdaq is down less than 3% from its most recent 52 week high, displaying its relative strength status, and remains above its 50 day SMA, although that support looks tenuous. An outside week was missed by less than one handle. It is clearly leading its S&P 500 counterpart on a YTD basis, by a 18.9 to 14.5% margin. It is even more impressive when you factor in 5 of the 6 largest components of the benchmark are basically in correction territory. AAPL is down 30%, although it has made a nice recent rebound, but AMZN is lower by 10%, CSCO 11%, GOOG 9%, and MSFT 8%. As the indexes resume their march south, it is hard to find safety in even the defensive names. The utility ETF XLU is in down 10%, but to its defense clinging to 200 day support. Former stellar food names like UN are down 12.5% from recent 52 week highs, CPB 11.5%, and K 10%. Tobacco names may yield handsomely, but whats the sense if your capital is shrinking. PM is down 14%, from recent highs, RAI and MO down 10%. Before I sound to negative however NYSE short interest is at a 5 year high. That statistic gets the contrarian antennas in me perking up.

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