Markets were never able to catch the breath Thursday as they major averages were underwater the entire session. All the reasons in the world could be given for the move but all that matters is price action. Could be the looming rate hike, 6 week winning streak losing steam, metals of all kinds hitting 5-6 year lows including copper, gold, silver and platinum to name a few (Ichan is certainly feeling it first hand with his recent commodity investments, FCX down nearly 40% during the last 5 weeks and CHK by 30%). That type of deflation, of course you can not leave crude out of the mix, would make the Fed think twice about a December hike and the financials acted as if that may be coming off the table. They soared last Friday after a robust jobs report, which feels like 5 months ago at the present. Heading into Friday the Nasdaq is now lower for the week by 2.7%. Barring a big session the 6 week winning streak will come to a halt. Five of the last six Fridays have been higher with the 2 best on 10/2 and 10/23 up 1.7 and 2.3% respectively. Look for a bounce at the round 5000 figure here. The S&P 500 is lower by 2.5% this week as and today undercut its 200 day SMA. A one week drop is probably healthy and the extent of this weeks drop thus far strong, should be put into context as the Nasdaq rose 9.5 and the S&P 500 by 8.5% during the 6 week winning streak. Retail whose group has been beaten up, and today AAP illustrated the groups woes. The auto parts sub sector, normally stalwarts, saw one of their best of breed names AAP today lose 15% after earnings. The round number theory did the stock in with just 2 CLOSES above 200 last week by a mere .34 and .38. Peer AZO suffered the same fate with a bearish shooting star from all time highs at the 800 figure last Friday. Was it company specific as ORLY jumped 4.9% on 10/29 and today filled in the 10/28 gap and then revved higher, pun intended?
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