Markets sold off to conclude the weeks trading in a bearish fashion. For the third time in the last 4 sessions both the Nasdaq and S&P 500 went out hard on their lows. For the week the Nasdaq lost 2.6% finding resistance at its 50 day SMA and the round 4700 handle. This week the S&P 500 fell for the fourth week in the last five and 3 of the 4 declined by more than 1.24%. It undercut the round 2000 number on a CLOSING basis since last October. It is approaching its 200 day SMA at the 1974 figure and for some reason I feel Monday can be a very ugly day. The volatility not only the benchmarks but individual names are experiencing are frightening and much damage has been done. We witnessed a plethora of earnings from some big names and all 5 of the largest components on the Nasdaq reported this week. The largest component AAPL was a bright spot on Wednesday gaining 5.6% and Friday it was a prime example of why we demand closing prices on all of our pivots. It crossed above a 119.85 cup base but reversed precisely off the round 120 number. Second largest component GOOGL rose 4.7% today on a weak tape. MSFT, the third largest component slumped 14.4% this week, its biggest drop in years. FB fell a generic 2.5% this week and rounding out the 5th largest name in the index was AMZN advancing 13.5% for its largest weekly gain in years.
This article requires a Chartsmarter membership. Please click here to join.