Markets fell Monday but following a late afternoon rally finished off mildly off session lows. The Nasdaq, once again leading to the downside, was at its lowest point down almost 2%. The Nasdaq is looking at a potential third consecutive weekly loss, a feat not seen since November 2012 (that was in the midst of a 6 week losing streak between the weeks ending 10/12/12-11/16/12). That puts things in context to just how strong this run has been, and perhaps overdue for a correction. The tech benchmark is now down almost 7% from its most recent 52 week high, whereas the S&P 500 is less than 3% off its. In my opinion benchmarks could see further downside ahead. The erratic action displayed by not only individual stocks, but by the major indexes is indicative of short term tops. Could there be additional selling ahead? Absolutely. The S&P 500 found 50 day SMA support, but did close below the important 1850 handle. Sure we have seen high beta names getting crushed lately but some leading stocks that were holding up well, have begun to succumb to the markets weight. A rising tide lifts many boats, but when the generals start to surrender it is time to be small and have lots of cash on hand. Some leaders in the retail space like KORS are looking at a possible fifth consecutive weekly decline, although they have all been in subdued trade. UA, a standout which lost almost 10% last week cracked its 50 day SMA Friday. Notice however it did bounce off the round par figure Monday.
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