Markets sank Thursday with the Nasdaq falling by 2% and the S&P 500 by 2.1%. The wild gyrations that began on Tuesday have continued for a third straight session, and there is a feeling that the bear claws may finally be getting a firm clasp on which they can feed. The bulls have been elusive on any selloff, and you could almost feel the euphoria on the stream Wednesday regarding yet another setback for the severely depressed bears. They may have something to sink their teeth into now. The benchmarks 50 day SMAs seem to be the bears best friend since the beginning of October began. The technical damage to the indexes is one thing but looking at the destruction in some of the individual leading names has to have even the saltiest of bulls wondering how deep this correction can go. The small cap indexes are already in correction mode. Will their bigger cousins follow suit? I pointed out last month of the abundance of supply coming onto the market with new issues and the 2 big ones recently in BABA and GPRO may have called a short term top. Interesting that their advances were halted near the round par figure. The erratic trade is bearish activity in the benchmarks as it is for individual names. Look at stocks like CAR and MAR. Notice how tight they have traded until recently. CAR is now lower by 28% and MAR by 12%. Pay attention to what the generals are saying.
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