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Volatility was the word on Thursday as stocks opened higher and made their highs of the day in early trading, then sank as the day went on and closed near the lows of the day. Dow was up more than 250-points at the highs, and down nearly 500 at the lows - closing with a loss of 406-points. The Nasdaq is down 9.6% from its all time highs, which was made earlier this month. Is that enough? The rest of the market seems to follow, so whether that 10% is enough or not may be the key.

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Originally Posted by coolhand

The bulls tried to add to Wednesday's gains, but were eventually beaten back by selling, which took the indexes into negative territory in afternoon trade. Confirmation of the negative action came today in the form of a bearish NAAIM reading.




The 50 dma is the current battle area and is providing support to this point, but I suspect it will not hold.

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Stocks rallied back on Wednesday, and being the 2nd trading day of the week made it feel like a Turnaround Tuesday. The 50-day EMAs seemed to hold so far, although some late selling keeps the "dead cat bounce" possibility alive. The Dow gained 440-points and those beaten down Nasdaq 100 large caps tech stocks came roaring back with a 3% gain. Bonds were down as the 10-year yield moved back over 0.7%.

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Originally Posted by coolhand

After 3 days of hard selling in a row, the market bounced on Wednesday. The bounce comes in the area of the 50 dma. Will that act as support? Maybe, but I'm not betting on it.




We can see that the 200 dma is still well under the 50 dma. That may be a target area for the bears (assuming the 50 doesn't hold).



Breadth bounced, but remains bearish.

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]Stocks fell sharply again on Tuesday, resuming the sell off from last week. So much for post holiday reversal or a Turnaround Tuesday. We're seeing some indices still holding above their 50-day EMA but small caps gave up the ghost on that one yesterday as it fell, and closed, below its 50-day average. The Dow lost 632-points, and percentage-wise, that 2.3% loss was the best of the three major indices. The Nasdaq lagged again with a loss over 4%, and it's now 10% below its highs. Bonds were ...