Markets fell again Thursday as volatility is starting to rear its head. Concerning today first and foremost was the lagging action of the Nasdaq compared to the S&P 500. Of course it is just one day, but I am always vigilant as to potential trends that may develop. For the week the Nasdaq is fractionally lower and a close below 37.45 would register the index a bearish outside week. The S&P 500 is down .7% going into Friday for the week, and has been putting up a strong fight at its 50 day SMA. But holes each day are being poked in the ship and water that is gathering is being thrown overboard furiously trying to save the sinking vessel. The Dow that we do not pay attention to that much did close just below the round 15000 figure, and is now down 9 of the last 11 days. It has surrendered 700 handles from its intraday top on 9/18. The Dow had taken out a flat base with an approximate trigger of 15660 on 9/18 hitting an all time high. Like the S&P 500 that took out it own trigger that day, both now look to be false breakouts. Keep in mind more fodder for the bears were the action of some of the market generals this week. HLF will need a quick caffeine boost after today’s dismal move. The 50 day may provide some temporary energy. TSLA is shaping up for a big outside week depending on tomorrows close. Thus far it is lower by 10% on the week reversing from all time highs. Perhaps these days it is prudent to bring up I believe Magee’s line, “one should fit his/her portfolio to his digestion”. Enough said.
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