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Stocks finally fell under the pressure of their own weight after nearly a month of unrelenting upside. Stocks slid at a single day loss not seen since March on Thursday. The aggressive selling came after digesting the FOMC meeting and possibly news reports of a second wave of covid-19. The Federal Reserve did not outwardly make any hawkish moves, in fact they figured they would keep interest rates near zero for another two years. What spooked investors was the tone from Jerome Powell that economy ...

The rubber band finally snapped. The market had lulled investors into buying two day dips because we hadn't seen three down days in a row in over three months. Those that bought this week's Tuesday / Wednesday dip were dealt a dose of reality yesterday. The Dow lost 1862-points and, as for the S&P 500 which lost 188-points or nearly 6%, while dramatic, the decline really only put it where it was about 11 days ago. It felt "crashy", but it's only down to the May 27 levels.
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Originally Posted by coolhand

Yesterday, I called recent selling pressure consolidation. Today, I'm calling it an attack (by the bears). The action was quite bearish.




That huge gap down is reminiscent of how the big sell-off started back in late February, but this one is more pronounced. Price closed below the 200 dma (support) on both charts. Momentum is falling (quickly). Volume was high (not good).

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It was another mixed day for stocks on Wednesday, which was almost a carbon copy of Tuesday's action -- only large tech stocks seemed to do well, and small caps lagged badly again. The Dow lost 282, making it almost 600 points over the last two days, but given the recent run up, that's not much relatively speaking. The Nasdaq Composite closed above 10,000 for the first time.

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Originally Posted by coolhand

Stocks continued to consolidate today as prices tumbled.




The S&P hasn't lost much, while the DWCPF has fared a bit worse, but that is not unusual for small-mid caps. I suspect that price may continue to consolidate, which could mean a price range for a time once a bottom has been made, followed by a resumption of the march to higher prices.

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