Markets were walloped Wednesday as neither the Nasdaq or S&P 500 saw the light of day. Both were underwater the entire session with the Nasdaq giving up 1.6% and the S&P 500 1.3%. The Nasdaq is down 2% for the week and is looking at potential consecutive weekly losses, which has not happened since the 3 week losing streak between the weeks ending 3/28-4/11. The tech benchmark fell nearly 7% in that time frame, before finding a precise bounce off the 200 day SMA on 4/15. Could it be headed toward its 200 day SMA now roughly near 4300? Would be almost 3% from here and certainly not out of the question. The S&P 500 is lower by 1.85% for the week and its 50 day SMA with anymore weakness will begin to slope lower. The teflon transports up until very recently took a beating Wednesday, as the IYT “derailed” itself below its 50 day SMA and round 150 handle all in one day. Perhaps the supremely confident train “little engine that could” repeating over and over to himself I know I can, I know I can is now convinced he can not. Some best of breed transport names were absolutely hammered today. Charts like TRN and GBX, names that have traded taut, and made continuous moves from the lower left to the upper right were decimated today. When leaders like this exhibit this type of action your antenna should be raised.
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