Markets recorded one of the more topsy turvy days in some time as benchmarks turned early losses into very respectable gains, then back to losses to end the session on a sour note. Remember most traders believe its not how you start but how you finish. For the fifth consecutive session the Nasdaq concluded the day well into the lower half of the daily range, a negative sign. For the S&P 500 it was the same and the round 2000 handle has become somewhat problematic to close above all of a sudden. The S&P 500 closed further underneath its 50 day SMA ending the day lower by .8% and is now down a quick 1.5% for the week. The Nasdaq lost 1.2% and is lower by 2% for the week, looking at a possible 3rd consecutive weekly drop. It was interesting that the momentum names never really entered into positive territory Tuesday with names like FB GOOG NFLX TSLA AMZN all lower. Perhaps the rally should have been suspect with the lagging energy and material groups leading the way. The very volatile nature of how individual names are behaving are indicative of toppy action, not bottoming. Traditionally instruments will make bottoms in a round smooth fashion and tops just the opposite. This market however is continuing to do what is does best though and that is confound the most. Im keeping my powder dry.
This article requires a Chartsmarter membership. Please click here to join.