Leadership Down

We’re watching leaders Apple (AAPL) and Amazon (AMZN) for indication of what may come for the broader market. Institutional grade selling for the two yesterday makes them vulnerable, with more of the same likely to lead to a significant leg down.

The Nasdaq has already hit its 50-day moving average. It may bounce in here as it flirts with the key technical support of a base breakout zone.

We expect the Dow and S&P 500 to also test their 50-day averages, which will happen sooner rather than later if leaders AAPL and AMZN continue to fall.

We’re holding a Buyer’s Caution bias. Trade what is, not what should be.