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Weekly Market Recap:
S&P 500 Sells Off Hard On Friday - Closes Below 50-Day SMA
Monday 10/26,
The markets finally buckled from
a technical standpoint and slid hard to close
down below the 5-Day moving average. It was a
broad-based selloff that had been building for
several days as the S&P 500 stalled out just
at the 1,100 resistance level. The Dow dropped
-104.22 or -1.05%. The Nasdaq lost -12.62 or
-0.59% and the S&P 500 was lower by -12.65 or
-1.17% to close at 1,066.95. At this point,
look for the market to sell down the 50-day
moving average where will likely see a bounce.
Tuesday 10/27,
After a brief attempt at bouncing
after the open, the market continued its slide
although muted. The Dow gained slightly rising
+14.21 or +0.14%. The Nasdaq dropped -25.76 or
-1.20% and the S&P 500 slipped -3.54 or -0.33%
to finish at 1,063.41. Its highly likely at
this point the S&P will dip down to at least
touch it 50-day SMA at 1,050 before there is
any larger scale rebound.
Wednesday 10/28,
The market renewed its downward
slide and spent virturally hour on the retreat.
Most notable was the plunge of the S&P 500 right
through its 50-day SMA closing below it. The
Dow shed -119.48 or -1.21%, the Nasdaq -56.48 or
-2.67% and the S&P 500 dropped -20.78 or -1.95%
to close at 1,042.63. Today was another long range
down day and we are really in free fall. The S&P
has lost 59 points or 5.4% from its pivot high
on 10/21 just 6 trading days ago. Next level of
support for the index is the range from 1,035
down to 1,020.
Thursday 10/29,
The market experienced a wild
sling-shot syle techenical bounce today off of
its 50-day SMA. The Dow shot up +199.89 +2.05%
The Nasdaq 2 gained +37.94 or +1.84% and the
the S&P 500 reclaimed +23.48 or +2.25%. The S&P
500 was able to close slightly above the 5-Day
SMA as well as the 30-min. on the 60-day. Before
you get to excited keep in mind that the index
is still below the 1,080 level and now below a
downward sloping overhead resistance line. See
Daily Chart. We could see some follow through
momentum to the upside on Friday but after that
its anyones guess.
Friday 10/30,
The markets experienced another
rough day of selling one day after bouncing
back from the previous drop. It was a broad
based sell-off with 95% of the S&P 500 ending
the day lower. The Dow ended the day down
-249.85 or -2.51% while the Nasdaq lost
-52.44 or -2.50%. The S&P 500 shed -29.92
or -2.81% to end the day deeper still below
its 50-day SMA at 1,036.19.
Watch how the S&P 500 responds below the 50-day SMA. - See Chart Below
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