Markets torpedoed lower Thursday as once again the Nasdaq took the brunt of the selling dropping 2.8% and the S&P 500 by 2.1%. The S&P 500 is now lower on the year as it came into today up 1%. The Nasdaq which was up close to double digits this year is now up just 3.2%. The benchmarks are warming up to a potential correction and the Nasdaq is leading that charge to the 10% threshold lower by 6.7% from all time highs. The S&P 500 is now 4.6% off its recent all time highs. Going into Friday the Nasdaq is off 3.3% and the S&P 500 by 2.7%. The Nasdaq has not recorded a 3% weekly decline since the week ending 10/10/14 which slumped 4.4% and the following week marked the bottom with a good looking hammer candle. Thursday the Nasdaq sliced its 200 day SMA and will likely generate a bounce tomorrow as the index prior to that week ending 10/10/14 has not CLOSED underneath that long term line since the last week in December 2012. The Dow which we rarely discuss can give some clues as the defensive, big cap dividend playing names are normally the last to fall. Many names in the benchmark have been in turmoil. DIS for example the epitome of tight trading and gradual gains for years has now quickly been hit. It now rests just below the bear market threshold of 20%. Expect at least a short term bounce as Mickey found his balance right at the round par figure.
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