A major whacking of shares across the board Thursday brings crash anxiety back.
Three Distribution Days in a row for the major indexes tells us institutions have been unloading.
With uncertainty in Europe, and an overdue correction from a year ago March’s low, it’s not hard to imagine fund managers wanting to lock-in gains and/or have cash on hand.
No telling where the carnage stops. The S&P 500 is just a touch away from taking out a low made two weeks ago during the “flash crash.”
We’re happy to say we’ve had a Sell Bias for about a month now. We’re using the correction as a litmus test to separate strength from weakness, giving us a better measure of what’s best to buy when the bull returns.
Looking at S&P 100 stocks, only Mastercard posted a gain today, up 1.5% as it bounces off a low for the year. The company benefited from the “failure of an amendment that would have allowed caps on credit card interest rates,” according to the Associated Press.
Elsewhere, it was breakdown city as stocks face the various support levels of their 50 and 200-day moving averages.
We’ll take a more comprehensive look at this, and the state of our beloved Growth Stocks, in our weekly market analysis.