Markets were shaken once again on Tuesday as the S&P 500 and Nasdaq lost 2.9%. Volume was firm and the S&P 500 fell for a fifth consecutive Tuesday. The S&P 500 seem intent on retesting the lows made last Monday and Tuesday of 1867. The Nasdaq would have quite a way further down to 4292 which would be almost another 8%. The CNBC special reports seem to be broadcast almost daily now, noteworthy technicians Louise Yamada and Carter Worth suggest selling may intensify. A sense of panic seems to be developing. Both the Dow and S&P 500’s 50 day SMAs are now beneath their 200 day SMAs recording bearish death crosses. We have others citing Dow Theory breakdowns. Both benchmarks we like to follow are now in correction mode with the S&P 500 off 10.3 and the Nasdaq off 11.4% from their respective all time highs. Not many sectors seem to be immune from the wreckage with even with even the utilities ETF XLU lower 7 of the last 9 days and already this week off by more than 4%. REITS have felt the heat, the once powerful biotechs look like they may be ready to crumble. The IBB is off almost 6% so far this week and is lower 4 of the last 6 with all 4 down weeks CLOSING at the lows for the weekly range. It ran into trouble not surprisingly at the round 400 handle on 7/20 and is off a rapid 17% from those all time highs. Below is the chart we posted in the opening paragraph of our Thursday 8/6 Game Plan.
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