Markets swooned lower on Tuesday with the general of the indexes, the Nasdaq taking the worst beating. It was off by 2% with big trade behind the move. When the leaders stumble its time to take notice of further weakness ahead. The Nasdaq lost 2% today, and down 3% for the week thus far, which has occurred on more than a few occasions this year already. The last time it occurred on 8/27 the 50 day line comforted the fall, and it resumed its uptrend. On 6/20 it did not, and on 4/15 the 50 day comforted the loss, but was undercut a few sessions later. Before today not to many were concerned about the Nasdaq’s 50 day SMA but how quickly things can change. It did not not find comfort at the round 3700 number either. The S&P 500’s 50 day was sliced decisively today and a move below 1627 would slice the lower lows being made to keep this uptrend alive. The 200 day currently sits at the round 1600 handle. Perhaps that will provide some strength. We discussed not to long ago that we were not worried about the market at highs until some crazy volatility started to rear its ugly head. Well it has done that definitively now. Concerning as this market advanced was the concentration of just a few names carrying the heavy load upon their shoulders. Well some of those names like FB TSLA were battered a bit today. They were down 7 and 5% respectively. Other leaders that were looking good today that got hit were HAIN. It had carved out a nice looking double bottom base with a potential trigger of 81.65. A 5% plus loss with a big bearish outside day today negated that formation. Breadth has started to fade as well. Monday for example on the NYSE there was just 46 new 52 week highs compared with 22 new lows. Bearishness is becoming more pervasive, and sometimes it pays to listen.
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