Just an absolute crushing today. The greater than 3% selloff was on huge volume which caused all kinds of technical glitches at the NYSE. I'm hearing that many traders still have orders stuck in the system as of 5:30. That can't be good for confidence in the market -- which reminds me that I need to keep an eye on NYX for a shortable bounce.
The selling was broad-based today -- 89% of Nasdaq stocks were down and 84% of NYSE stocks declined. The view on the StockCharts.com market summary page is amazing. Every major market, major index, sector ETF, Industry Average and International index was down. Here's are the industry averages:
I've said before that this move higher felt like a game of musical chairs and today the music seems to have stopped for real. There's a whole lot of technical damage in the indices. All the indices crashed through their 50-day moving averages today. Yesterday I mentioned the Dow broke its summer 2006 trendline. The Russell 2000, S&P 500 and Nasdaq broke their 2006 trendlines today on big volume. The index charts are below:
The Dow is now down 2% for the year. It closed well under its lower Bollinger Band. (%b is -0.40). I don't see much significant support until around 12,000:
The S&P 500 is now down 1.36% for the year. It's also well below its lower Bollinger Band with a %b of -0.37. Looks like the next support is around 1380:
I couldn't believe that the Nasdaq was down over 100 points during the day. We haven't seen that in a long time. It's now down 0.31% for 2007 and is closing in on the 2390 to 2400 area which has been support since November.
QQQQ has made a pretty amazing move from the upper Bollinger Band yesterday to the lower band today. It did that on all-time record volume of over 300 million shares. It's now up 0.07% for the year.
The Russell 2000 dropped back under 800, wiping out that impressive breakout it worked so hard for. It's now up 0.64% for the year.
Today wrung out some of the built up complacency of the last 6 months or so. Here's the VIX:
Lot's of changes to 'down' today with 10 and 50-day moving averages broken.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Down(-) | Down(-) | Down(-) |
| Short-term | Down(-) | Down | Down(-) |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
:d
Looks i was right about the market correction! Many flase breakouts. I have a theory that the maker is being mainuplated by the hedge funds and this is another classic case of Marekt mainpultaion.
Did i not say that all this technical support will be taken out, very quickly as well. This market is moving in cylces and you ahve to do is study the trneds over the last several years. There is a fundamentalcomponent to it, but in the short term over severla months it is no doubt being mainpulated for the purpose of transfering cash fromt he professional hedge fund manager and MM from the basic retial sucker. If you think about it if the average market upswing is 5-10%, there has to be losers for these hedge funds to get thier big fat bonus. Hate to be cynical but that is what i see in the technical charts!
LOL...that's not the way the markets work. Good luck to you.
Be careful Michael, DJ just took the NYX off the hook.
DOW JONES TAKES the BLAME
Glitch Hits Dow Average But Prices Are Not AffectedBy Reuters | 27 Feb 2007 | 07:25 PMFont size: A technical glitch hit the system that calculates the Dow Jones industrial average on Tuesday, but it did not affect stock prices, a spokeswoman for Dow Jones Indexes said.
With an hour left to trade, the Dow Jones industrial average fell more than 500 points as it abruptly added about 200 points to its slide in late afternoon trade.
"At around 2 p.m. we realized extraordinarily heavy volume coming in and that caused a delay in the Dow Jones data system," said Sybille Reitz. "As a result the calculation of the Dow average temporarily lagged behind the market decline. We then switched over to a backup system, which resulted in a rapid catch up in the published value of the Dow," she said.
Yeah, I saw that a few hours ago and posted it on the previous entry. That doesn't do much for all the traders who got hosed today. The NYSE's system broke down today.
The market was going to correct anyways. All this bs about this reason or another is just that, bs.
The move was coming and I hope most of you saw it coming. :)>-
This was rigged man...this was rigged
:d
I dont agree, the market moves in cycles, end of discussion!