Markets gyrated a bit and finished well off their lows. There does seem to be a lot of chatter of how long and deep this correction may persist, and we are starting to lean a bit more bullishly because of it. Of course there still are concerns, most notably being the S&P 500 holding this 1740 level. Although it has been unable to make a dent in the oversized losses on Monday, it has put back to back days of concluding near session highs, a good sign. The Nasdaq is clinging to the round 4000 level, and is still bettering the S&P 500 on a YTD basis down 4% to the S&P 500’s 5.2%. That being said we pay very close attention to the behavior of leading stocks within their respective groups, for as the generals go, so goes the market. HAIN lost 7% slicing its 50 day SMA in the process, but like many names will do bounced basically precisely off the round 80 number. Volume was one of the largest in a year, and the action has to be considered as bullish. AMBA a leader in the chip space sliced its 50 day SMA as well in bulging trade. Astute investors may not have been surprised since that very bearish outside week ending 1/10 when it lost 14% reversing from an all time high. BWLD cratered 10% in front of a usually strong season for them with March Madness. Perhaps the company can rename the upcoming NCAA basketball bonanza “March Sadness”.
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