Markets followed through on Thursday’s bearish shooting star candle with a CLOSE underneath the prior sessions finish. The Nasdaq dropped 1.4 and the S&P 500 from 1.6%. For the week the were basically UNCH with the Nasdaq gaining .1% and the S&P 500 losing by the same amount. YTD the Nasdaq still maintains a very comfortable margin with a 1.9% gain compared with the S&P 500’s 4.9% drop. Both the S&P 500 and the Nasdaq now sport bearish rising wedge patterns and for the S&P 500 a break below 1948 (must be a CLOSE below it as we learned with the S&P 500’s breakout on 9/9 above the bear pennant pattern did not finish above) would put it on a path to retest the lows made back in August whose talk about has been incessant. For the week healthcare continued to dominate gaining better than 2% and one would pay close attention to the group. Failures in the sector would be seen as a big negative. We have written extensively about the group with post on August 30th and again this past week just to name a few. Gold perked up this week with the GLD gaining almost 3% but volume was below average and although it jumped back above its 50 day SMA Thursday, its spinning top candle on Friday suggests a weakening of the short term trend. The ETF is lower 10 of the last 13 weeks with volume accelerating each week between a 5 week losing streak ending between 6/26-7/24. For those would like to view a full copy of Mondays Game Plan email me at email@example.com.
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