When the market makes a three hundred point reversal in any direction, it should get your attention; but when it’s to the downside, it should make us sit up and move closer to our screen. Initially, it was clear, stocks followed the failed rally attempt in oil. However, crude actually closed slightly higher while most equity indices finished the session near the lows of the day.
Now these indices must make a stand and fend off moving even further below key technical levels. For the S&P, this is a pivotal point just fractionally above the 200-day and below its 50-day moving average (exponential). Below 2,020 is where things could become dicey.
S&P
The issue is leadership. While a handful of winners have masked a really difficult year, where the majority of stocks are down a lot, these names must continue to lead the way until some kind of wider rotation can occur. On Wednesday, FANG got bit and the broad market felt the pain.
- FB -$1.89
- AMZN -$12.54
- NFLX -$2.78
- GOOG -$10.76