Markets gave investors an early thrill with morning gains in the 1.5% neighborhood, but the vast majority of the move was evaporated by the close. Both the Nasdaq and S&P 500 finished up .5%. That type of action is indicative of bear market behavior, whereas strong bull markets start limp and go out brave near highs. Headed into Friday the Nasdaq is down 1.5% and likely looking at a second consecutive weekly decline. Remember last week finished well after a soft a Monday. The S&P 500 is lower by close to 2% and its 7 week winning streak looks all but over. Shockingly energy and materials led the way lower as some retail names benefitted. RH rocketed higher by 9% after a well received earnings report, however it did like many names will do initially when hitting the round par figure, it reversed badly. I am simply a technician and always looking to view things in a contrarian way and today I pondered if demand if not able to keep up with supply simply because of the amazing technological advancements made in the energy arena. That I am sure sounds silly as most of the new supply coming online is from right here in the USA and we are unable to export. I am still in the camp that the economy is not as robust as many believe, but of course we know the economy and stock market are 2 totally different animals. On that negative note the SDS looks as if its ready to come out of hibernation and ready to feed with its scent on the 200 day SMA teasingly just above.
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