Markets endured an extremely painful week and were certainly happy at the closing bell on Friday at 4pm. For the week the Nasdaq cratered 7.3% on the fourth largest weekly volume since the beginning of 2015. The S&P 500 slipped 6%, and lets keep in mind the weekly moves we just witnessed would be acceptable as yearly gains. January, right from the get go, has sent out a warning signal. Both the aforementioned indexes are now in correction mode with the S&P 500 now 10% off recent 52 week highs, the Nasdaq by 11, and the small cap IWM after today is in bear market mode having declined 20%. There seems to be few place to hide, perhaps with the exception of Gold which shined 4% this week. Oil was drilled lower by 10%, pun intended and the sell the rips mantra is now in full effect. Prime example was the retail group, which Thursday saw a multitude of names shine. Friday those gains were eviscerated as names like KSS UA and RH all clipped 4-5% off their share prices. And this was of course in the face of well received jobs report before the open and a slumping crude price. Speaking of crude one has to be alarmed when the airline group can not seem to get out of its own way. When best of breed names like ALK, which is now teetering on the brink of the bear down 19% now from recent highs. Some foreshadowing was the action POST breakout from a cup base pivot point of 82.88 on 12/4 jumping 5.4% on huge volume. Five days later it was back below the trigger, a red flag as the best breakouts will work out basically right away. Could it be that the reluctance of airlines to respond to favorable conditions, a sign the oil prices may be firming and ready to start moving higher?
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