Stocks Lose Their Bounce

Stocks Lose Their Bounce

Stocks gapped up at the open, in what appeared to be another buy-the-dip reversal. Sellers saw the higher open as an opportunity to sell at higher prices than Friday. Trading volume was heavy and the selling pressure was steady. Biotechs and small caps participated in the selling today, as did leading stocks. Still, we are right about at the point where the market could right itself and move higher. I suppose there are some differences this time with no QE programs and tanking oil prices. As unlikely as was the straight up rally off the October lows, a selloff here doesn’t make sense.

Nonetheless, most every index is now in a downtrend (a bit of a stretch for Nasdaq 100 and Biotech indexes). The Russell 2000 small cap index undercut a recent area of consolidation, so I sold my IWM and went to cash in my retirement accounts. Hopefully something shows some outstanding relative strength before my next buy signal.

Source: 

Stocks Lose Their Bounce

See which stocks are being affected by Social Media

Share this post